SINGAPORE - Keppel Corporation, through Keppel Land China Limited, has entered into an agreement with vendor Sichuan Shengdai Food Co to acquire the latter's stake in a 3.35 hectare (ha) plot of land in Chengdu, China for 373 million yuan (S$74.56 million).
Sichuan Shengdai will form an incorporated company - called NewCo - in which Keppel will hold a 100 per cent equity interest in, effectively becoming an indirect wholly owned subsidiary of Keppel's.
Completion of the acquisition is expected to take place sometime in the third quarter of 2018, and Keppel intends to develop a residential project at the site.
Keppel announced that the consideration took into account the site's market value, which is estimated to be around 416 million yuan as at July 29, 2018 based on similar sites.
The transaction is not expected to have any material impact on Keppel Land China's earnings per share and net tangible asset per share for the current financial year.
