Keppel sells stake in China project for $595m

Keppel Corp expects to record a gain of $290 million when it sells its stake in a China waterfront residential and recreational development for 2.9 billion yuan (S$595 million).
Keppel Corp expects to record a gain of $290 million when it sells its stake in a China waterfront residential and recreational development for 2.9 billion yuan (S$595 million). PHOTO: REUTERS

Its Keppel Land China unit is divesting stakes in a residential cum marina development

Keppel Corp expects to record a gain of $290 million when it sells its stake in a China waterfront residential and recreational development for 2.9 billion yuan (S$595 million).

Its Keppel Land China unit inked an agreement on Wednesday to divest its entire 100 per cent stake in Keppel China Marina Holdings to Delight Prime.

The sale is expected to be completed by the end of the year.

Keppel China Marina Holdings indirectly owns an 80 per cent stake in Sunsea Yacht Club (Zhongshan), which owns and is developing Keppel Cove, a residential and marina development on Modao Island, Zhongshan City, China.

Keppel Cove covers 891,752 sq m. The first phase of the premium berths was completed in March.

Keppel Land chief executive Ang Wee Gee said: "The divestment is in line with our strategy to recycle assets to seek higher returns and rebalance our portfolio to focus on our five key cities of Shanghai, Beijing, Tianjin, Cheng-du and Wuxi, where we have established strong track records and local teams."

Keppel Corp shares closed down five cents, or 0.67 per cent, at $7.40 yesterday after the announcement was made.

  • 80%
       
    Percentage stake Keppel China Marina Holdings indirectly has in Sunsea Yacht Club (Zhongshan), which owns and is developing Keppel Cove, a residential and marina development on Modao Island, Zhongshan City, China.

Based on the latest audited financial statements of Keppel Corp for the financial year ended Dec 31, 2016, had the divestment been completed on Dec 31 last year, the net tangible asset per share would have increased from $6.34 to $6.50 after the divestment.

Had the divestment been completed on Jan 1, 2016, the earnings per share for last year would have increased from 43.2 cents to 59.2 cents after the divestment.

A version of this article appeared in the print edition of The Straits Times on October 27, 2017, with the headline 'Keppel sells stake in China project for $595m'. Print Edition | Subscribe