KEPPEL is divesting 70 per cent of its stake in its unit Saigon Sport City, which holds the right to develop a 64-hectare plot of land in Ho Chi Minh City, the asset manager and operator said in a post-trading regulatory filing on Monday (Sep 30).
Keppel’s subsidiary Jencity, which owns 100 per cent of Saigon Sport City, will sell a total of 35 per cent in two tranches to HTV Dai Phuoc Company. It will be paid about 320 million dong (S$16.7 million) for a 5 per cent stake and as much as 3,290.6 billion dong for a 30 per cent stake.
Jencity will separately divest a 35 per cent stake to Vinobly Investment Real Estate Joint Stock for as much as 3,839 billion dong.
The amount that Keppel will receive for the 30 per cent stake and the 35 per cent stake depends on when the conditions precedent are fulfilled, which include obtaining regulatory approvals for the project.
The net asset value of Saigon Sport City was about 2,739.4 billion dong as at Jun 30.
The transactions are not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year, the asset manager said.
Meanwhile, Keppel also announced that another unit, Himawari VNSC3, has issued 46,364,475 new ordinary shares to Toshin Development for US$46.4 million, with Keppel’s wholly owned subsidiary Saigon Centre Investment holding the remaining 46,550,305 ordinary shares.
Himawari holds preference shares in two other firms, which in turn own varying amounts of stakes in the two companies that together hold the land use rights to a planned mixed-use development called Saigon Centre Phase 3 in Ho Chi Minh City.
Keppel shares rose 0.2 per cent or S$0.01 to S$6.63 on Monday, before the announcement.
