Shares of Keppel Corp may be in focus as it nears the end of a bumpy property deal, with the company saying on Monday that a China subsidiary has nearly completed a deal to sell Keppel China Marina Holdings to Delight Prime Ltd. (DPL).
The company’s plan to sell a stake in a China marina project for 2.9 billion yuan (around S$605 million) was blocked in November by minority shareholder Sunsea Yacht Club filing a court case in Singapore to scuttle the deal, the Business Times reported in November. The Singapore Court of Appeals dismissed the case earlier this year.
The proceeds of the deal appear significant for Keppel. For 2017, Keppel reported net profit of S$217 million, although that was down from S$784 million in 2016 due to financial penalties related to resolving allegations of corruption in relation to contracts In Brazil.
Fully owned Keppel unit Keppel Land China Ltd. (KLCL) had inked a deal to sell its fully owned unit, Keppel China Marina Holdings, which owned 80 percent of the Keppel Cove residential and marina project, to a unit of Hong Kong-listed Logan Property for 2.9 billion yuan, the Business Times report said. The remaining 20 percent of the Keppel Cove project is held by Sunsea Yacht Club.
In an SGX filing on Monday, Keppel said that KLCL has received around 2.865 billion yuan, comprising 451 million yuan and S$496 million, from DPL, which it said was “substantially the whole of the consideration.” It added that it expected another S$7 million on Monday.
“The company is of the view that the divestment is substantially complete,” Keppel said.
The stock ended Thursday up 1.44 percent at S$7.77; the Singapore market was closed Friday for a holiday.