Portsville, a wholly owned subsidiary of Keppel Land (KLL), will be selling a 70 percent stake in Vietnam-based Dong Nai Waterfront City (DNWC) to Nam Long Investment Corp. (NLG) for 2.31 trillion Vietnamese dong, or around S$136 million, Keppel said on Monday.
“The proposed divestment is in line with KLL’s strategy to recycle assets to seek higher returns. The funds generated from the proposed divestment will be used to pursue other opportunities in Vietnam,” Keppel said in the filing to SGX before the market open on Monday.
Keppel will retain a 30 percent interest in DNWC, it said.
DNWC has been granted the right to develop a township in Dong Nai Province, in Vietnam, the filing said.
Currently, DNWC is held jointly by KLL and a joint venture partner, but it is undergoing a demerger, and once that is approved by Vietnamese authorities, it will become a wholly owned subsidiary of Portsville, with the rights to develop a 170 hecatare plot of land, it said.
DNWC also holds a 28 hectare plot of land excluded from the proposed divestment, it said.
The DNWC stake sale is conditional upon the completion of the demerger and approvals from Vietnamese authorities, Keppel said.
On a pro forma basis, if the proposed divestment was completed on 1 January 2018, earnings per share for 2018 would have been 55.0 Singapore cents, up from the reported 52.0 Singapore cents, Keppel estimated.
The unaudited net asset value of the sale stake was around S$57 million as of the end of 2018, the filing said.