SINGAPORE (May 30): TEE International is extending the completion date for the sale of a 28% stake in subsidiary TEE Land to Top Capital Securities by about two months.

On May 10, TEE International had announced that it would sell 100.5 million shares in TEE Land -- or a 28% stake -- at 18.6 cents each in cash or totalling nearly $18.7 million.

Completion of the sale was initially expected on May 15.

In an announcement before the market opened on Thursday however, the engineering group announced it is in discussions to extend the completion date to no later than July 14.

TEE International says this is to “accommodate satisfaction of completion deliverables on the part of the purchaser”.

In addition, the purchaser has offered to place a further sum of about $1.83 million into an escrow account, which together with an existing deposit of $0.5 million, amounts to $2.33 million, or 12.45% of the deal amount, says TEE International.

The 18.6 cents consideration represents a 5.62% premium to the volume-weighted average price of 17.6 cents on May 9, being the last market day before the agreement was entered into.

The net sale proceeds of $18.22 million will represent a loss of about $14.76 million against the book value of the sale shares as at Feb 28 this year of about $32.98 million.

TEE International intends to use the net sale proceeds to repay loan or bank borrowings and for general working capital purposes, it said previously.

Following Thursday's announcement, TEE International has called for a lifting of its trading halt requested on Monday.

TEE International shares last traded flat at 6.2 cents on May 27, while shares in TEE Land closed flat at 17 cents on the same day.