Keppel Land’s wholly-owned subsidiary Portsville is divesting its remaining 30% interest in Dong Nai Waterfront City in Vietnam to Nam Long Investment Corporation for a total consideration of VND 1,951 billion ($115.9 million).

The consideration will be paid out in cash to Portsville in two tranches.

Dong Nai Waterfront City has the right to develop a 170-hectare township in Vietnam’s Dong Nai Province.

With the divestment, Keppel Land expects to recognise a gain on disposal of some $52.5 million.

The transaction comes after the divestment of Portsville’s 70% interest in Dong Nai Waterfront City to Nam Long Investment Corporation in 2019.

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See: Keppel divests 70% interest in Dong Nai Waterfront City for $136 mil

The divestment is expected to be completed in the first half of 2021, subject to certain conditions being fulfilled including the issuance of a new Enterprise Registration Certificate by the relevant Vietnamese authorities.

Had the divestment been completed on Dec 31, 2019, Keppel Corporation’s net tangible asset per share as at Dec 31, 2019, would have increased to $5.28 from $5.25 previously.

Had the divestment been completed on Jan 1, 2019, the earnings per share for FY2019 would have increased to 42.0 cents from 38.9 cents previously.

Joseph Low, General Director of Keppel Land (Vietnam), said, “The divestment of Dong Nai Waterfront City is in line with Keppel’s plan to monetise identified assets and apply the balance sheet space that is released for new growth opportunities under its Vision 2030”.

“We will continue to expand our presence in Vietnam, a key market for Keppel Land, and contribute to the country’s sustainable urbanisation with our quality residential and commercial developments as well as integrated townships,” Low adds.

Shares in Keppel Corporation closed 17 cents lower or 3.2% down at $5.07 on Nov 30.