Keppel Land divests 100% stake in Shanghai Jinju Real Estate Development Co for $196 mil

Felicia Tan
Felicia Tan10/26/2022 06:28 PM GMT+08  • 2 min read
Keppel Land divests 100% stake in Shanghai Jinju Real Estate Development Co for $196 mil
The divestment is expected to be completed in the 4QFY2022. Photo: Keppel Corporation
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Keppel Corporation, on Oct 26, announced that its wholly-owned subsidiary Keppel Land is divesting 100% of its equity interest in Shanghai Jinju Real Estate Development Co Ltd.

The divestment was made between Keppel Land’s subsidiary, Shanghai Maowei Investment Consulting Co Ltd, and Shanghai Dongyuan Real Estate Development (Group) Co Ltd, who will be buying over Keppel Land’s stake.

Shanghai Jinju owns Sheshan Riviera, a residential development project in Songjiang District, Shanghai, China.

In the statement released by Keppel, Shanghai Dongyuan Real Estate Development (Group) Co Ltd will acquire the sale shares from Shanghai Maowei and pay a total amount of RMB967 million ($196 million).

Of the total sum, RMB456 million will be paid to Shanghai Maowei as consideration for the sale shares. Another RMB306 million will be paid to a related company of Shanghai Maowei as repayment for loans extended to Shanghai Jinju. A final RMB205 million will be paid on behalf of Shanghai Jinju to Shanghai Maowei, being a dividend that is receivable by Shanghai Maowei from Shanghai Jinju.

The total sum of the consideration, loan repayment and dividend will be payable in cash in three instalments. Of the sum, 20% has already been paid. Another 75% will be paid upon the transfer of the sale shares while the remaining 5% is to be paid by the 4QFY2022.

See also: IHH Healthcare subsidiary Acibadem expands into third largest city in Turkey with acquisition of Kent Health Group

The consideration was arrived at on a willing-buyer willing-seller basis factoring in the location of the site, prevailing market conditions and the adjusted net asset value based on the agreed value of the site attributable to the sale shares as at Sept 30.

The divestment is expected to be completed in the 4QFY2022.

Following the completion of the divestment, Shanghai Jinju will no longer be a subsidiary of Keppel Land.

Shares in Keppel Corp closed 1 cent higher or 0.15% up at $6.60 on Oct 26.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.