SINGAPORE (Jan 28): Keppel Corporation announced that a wholly-owned subsidiary Keppel Land Limited (KLL), Portsville, is divesting a 70% interest in Dong Nai Waterfront City (DNWC) to Nam Long Investment Corporation for a consideration of VND 2,313 billion ($136 million).

DNWC is a company incorporated under the laws of Vietnam and had been granted the right to develop a township in Dong Nai Province.

DNWC, jointly held by KLL and a joint venture partner, is undergoing a demerger and upon the issuance of an Investment Registration Certificate by the relevant Vietnamese authorities, DNWC will become a wholly-owned subsidiary of Portsville with the rights to develop a 170 ha plot of land. DNWC also currently holds a 28 ha plot of land which is excluded from the proposed divestment.

Upon completion of the divestment, Keppel and KLL will hold only 30% interest in DNWC.

This divestment is in line with KLL’s strategy to recycle assets to seek higher returns. The funds generated from this deal will be used to pursue other opportunities in Vietnam.

Shares in Keppel last traded at $6.20.