Keppel Limited’s subsidiary, Jencity Limited, is divesting its 70% stake in Saigon Sports City Limited (SSCL). SSCL holds the right to develop a plot of land measuring some 64 hectares in Vietnam’s Ho Chi Minh City.
In its Sept 30 statement, Keppel says Jencity will divest 35% of SSCL’s charter capital to HTV Dai Phuoc Company Limited while the other 35% will be sold to Vinobly Investment Real Estate Joint Stock Company. Jencity will still hold the remaining 30% in SSCL.
HTV Dai Phuoc will purchase the stake in two tranches of 5% and 30%. The company will pay a cash consideration of VND320 billion ($16.8 million) for the 5% stake; the amount will be paid in full once the equity transfer is registered with the regulatory authorities.
HTV Dai Phuoc will pay another consideration ranging from VND2.88 trillion (or $151.2 million) to VND3.29 trillion (or $172.8 million) for the 30% stake depending on whether the stipulated conditions are fulfilled. This consideration will be paid in two waves.
The net asset value (NAV) of the 5% stake is at VND137.0 billion (or $7.2 million) as at June 30 while the NAV of the 30% stake is approximately VND821.9 billion (or $43.1 million).
Vinobly will pay Jencity a consideration ranging from VND3.36 trillion (or $176.4 million) to VND3.84 trillion (or $201.5 million) for its 35% stake. The NAV of the stake is around VND958.8 billion (or $50.3 million) as at June 30.
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The completion of the divestment is subject to the satisfaction of conditions precedent including obtaining the regulatory approvals for the right to develop the land plot in Ho Chi Minh City.
On the same day, Keppel announced that Toshin Development, the commercial developer within the Takashimaya Group, has subscribed for 46.4 million ordinary shares in its subsidiary, Himawari VNSC3 Pte Ltd. Himawari holds class C preference shares in each of Keppel Land (Saigon Centre) and Krystal Investments.
Keppel Land (Saigon Centre) and Krystal Investments have respective stakes of 68% and 16% in each of Keppel Land Watco-IV Company Limited (KLW IV), and Keppel Land Watco-V Company Limited (KLW V). KLW IV and KLW V hold the land use rights for Saigon Centre Phase 3 located in Ho Chi Minh City’s District 1. Saigon Centre Phase 3 is currently undergoing planning and is intended to be a mixed-use development.
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Toshin will pay US$46.4 million ($62.2 million) for the shares, which is the adjusted NAV of the company’s agreed interest in KLW IV and KLW V. The amount is, in turn, based on the agreed value of Saigon Centre Phase 3 as at Aug 31. The consideration will be paid in seven tranches; the last will be paid after the construction permits have been issued to KLW IV and KLW V.
Keppel’s wholly-owned subsidiary, Saigon Centre Investment Ltd, holds the remaining 46.6 million shares in Himawari.
Shares in Keppel closed 1 cent higher or 0.15% up at $6.63 on Sept 30.