Keppel Land, a wholly-owned subsidiary of Keppel Corporation BN4 % , along with its wholly-owned subsidiary, Double Peak Holdings, will be divesting 100% of the shares in Greenfield Development to Spring Blossom Ventures for a consideration of US$57.4 million ($75.6 million).
Greenfield Development, in turn, holds 100% of the total shares in Straits Greenfield, which has the right to build and operate a hotel in Myanmar.
The consideration, which was over the net asset value (NAV) of the shares of around US$43.9 million as at Feb 28, will be paid out over three tranches.
The divestment is slated to be completed by the first half of 2023, where Greenfield Development and Straits Greenfield will no longer be subsidiaries of Keppel Corporation.
The divestment is said to be in line with Keppel’s Vision 2030 asset monetisation plans to unlock capital, which can then be used for new growth opportunities. It is not expected to have any material impact on Keppel Corp’s net tangible assets (NTA) per share or earnings per share (EPS).
Shares in Keppel Corporation closed 3 cents higher or 0.55% up at $5.46 on March 3.