SINGAPORE (Dec 26): Keppel Corporation says Keppel Land China (KLC) will not be able to complete the divestment of Keppel China Marina Holdings (KCMH) --  at least for the moment.

This is despite the Dec 22 decision by the Court of Appeal to reject an application by Sunsea Yacht Club (Hong Kong) (SYCHK) to appeal against a Dec 15 order by Singapore High Court to restrain KLC from completing the divestment, be dismissed.

KLC is selling 100% stake in KCMH to Delight Prime for $597.4 million.

See: Keppel Land China sells stake in Keppel Cove in Zhongshan for $597.4 mil

KCMH owns an 80% stake in Sunsea Yacht Club (Zhongshan) Co. (SYCZS), which is developing Keppel Cove, a residential cum marina development on Modao Island, Zhongshan City, China.

SYCHK owns the remaining 20% in SYCZS.

In Nov, SYCHK had filed a writ of summons in the High Court restraining KLC from divesting its entire sake in KCMH.

See: Keppel hit by lawsuit to restrain sale of stake in Zhongshan Keppel Cove development

After the Dec 15 order, SYCHK informed the High Court of its intention to apply to the Court of Appeal for permission to appeal the dismissal of application. The High Court had allowed SYCHK for an order restraining KLCL from completing the divestment until the application to Court of Appeal was disposed.

"Given the High Court’s orders, KLCL will not for the moment be able to complete the Divestment pending the Court of Appeal’s decision. KLCL will work closely with its lawyers to expedite the disposal of the Application to CA," says Keppel in a filing this morning.

Keppel says it will continue to keep shareholders updated on developments related to the court proceedings and the divestment.

Shares in Keppel closed 2 cents higher at $7.47 on Friday.