Keppel Land divests remaining 30% stake in Dong Nai Waterfront City for $115.9 million

Keppel Corp shares closed at $5.07 on Nov 30, down 17 cents or 3.2 per cent. PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - Keppel Corp's property arm, Keppel Land, is divesting its remaining 30 per cent interest in Dong Nai Waterfront City (DNWC) for about 1.95 trillion dong (S$115.9 million) in cash.

The transaction follows the divestment of Keppel Land's 70 per cent stake in DNWC to Nam Long Investment Corporation (NLG), which was announced in 2019.

DNWC has the right to develop a 170-hectare township in Dong Nai Province, Vietnam, Keppel Corp said in a press statement on Tuesday (Dec 1).

The buyer is NLG, which will pay the consideration in two tranches upon completion of the deal.

With the divestment of this remaining 30 per cent interest, Keppel Land expects to recognise a gain on disposal of about $52.5 million.

The deal is expected to be completed in the first half of 2021, subject to certain conditions being fulfilled, including the issuance of a new enterprise registration certificate by the relevant Vietnamese authorities, Keppel Corp noted.

Mr Joseph Low, general director of Keppel Land (Vietnam) said: "The divestment of Dong Nai Waterfront City is in line with Keppel's plan to monetise identified assets and apply the balance sheet space that is released for new growth opportunities under its Vision 2030."

He added that Keppel Land will continue to expand its presence in Vietnam which is a key market, and contribute to the country's sustainable urbanisation.

Based on Keppel Corp's latest audited financial statements, had the proposed divestment been completed on Dec 31, 2019, the net tangible assets per share as at end December would have increased to S$5.28 from S$5.25.

Keppel Corp shares closed at $5.07 on Monday, down 17 cents or 3.2 per cent.

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