KEPPEL LTD. Keppel Corporation Limited (the "Company" or "KCL") wishes to inform that its subsidiaries, Keppel Land Limited ("KLL") and Kepventure Pte Ltd ("KVPL"), have entered into a sale and purchase agreement (the "SPA") with Prime Value Asia Limited for the sale of:
1,650,000 ordinary shares (55%) and 1,350,000 ordinary shares (45%) respectively (collectively, the "Sale Shares"), representing 100% of the issued and paid up capital of Fernland Investment Pte Ltd ("Fernland"); and
all sums due or owing to KLL and KVPL and/or their related entities by Fernland as at the Completion Date (as defined below) (the "Transferred Loan"),
(collectively, the "Proposed Divestment").
The consideration for the Proposed Divestment will be for an amount up to approximately US$10,860,000 (the "Consideration"), payable as follows:
20% of the Consideration received by KLL and KVPL yesterday (the "Deposit"); and
the balance of the Consideration on or before the Completion Date (as defined below).
Fernland owns 78.58% of the paid up charter capital in a Vietnamese incorporated company, which holds an office building in Hanoi, Vietnam.
The Consideration was arrived at on a willing buyer willing seller basis taking into account the future business prospects of Fernland as well as (i) the unaudited book value and unaudited net tangible assets attributable to the Sale Shares, which as at 31 December 2015 is S$7,333,000; and (ii) the aggregate book value attributable to the Transferred Loan, which as at 31 December 2015 is approximately S$6,393,000.
The Proposed Divestment is in line with KLL's strategy to actively recycle capital to maximise returns.
The transaction will be completed by 30 June 2016 (the "Completion Date"). Upon completion of the Proposed Divestment, Fernland will cease to be a subsidiary of the Company.
None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.
The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of KCL for the current financial year.
Keppel Corporation Ltd. issued this content on 26 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 January 2016 10:19:11 UTC
Original Document: http://www.kepcorp.com/en/download.ashx?id=9408
