Tee International delays sale of Tee Land stake by 2 months

SINGAPORE - Tee International is extending the completion date for the sale of shares in its subsidiary Tee Land to Top Capital Securities by about two months, the engineering group announced on Thursday morning (May 30) before the market opened.

The company noted that it is in discussions to extend the completion date to no later than July 14, in order to accommodate the completion of deliverables on the part of the purchaser.

Tee International had previously said the sale of a 28 per cent stake in property developer Tee Land - for nearly $18.7 million - is expected to be completed on May 15.

In a regulatory filing on Thursday, the company added that an offer has been made to place a further sum of about $1.83 million into an escrow account, which together with an existing deposit of $0.5 million, amounts to $2.33 million, or 12.45 per cent of the deal amount.

Tee International expects to enter into a supplemental agreement in due course to effect this, the company said.

On May 10, the company had announced that it would sell 100.5 million shares in Tee Land at 18.6 Singapore cents each in cash.

The consideration represents a 5.62 per cent premium to the volume-weighted average price of 17.6 Singapore cents on May 9, being the last market day before the agreement was entered into.

The net sale proceeds of $18.22 million will represent a loss of about $14.76 million over the book value of the sale shares as at Feb 28 this year of about $32.98 million.

Tee International intends to use the net sale proceeds to repay loan or bank borrowings and for general working capital purposes, it said previously.

Following Thursday's announcement, the company has called for a lifting of its trading halt requested on Monday. Tee International shares last traded flat at 6.2 cents on May 27, while shares in Tee Land closed flat at 17 cents on the same day.