Keppel divests Flemmington Investments in a $98.6mn deal

SINGAPORE: Keppel Land Limited (KLL) is divesting its 100% equity interest in Flemmington Investments Pte. Ltd. (FIPL).

FIPL holds a 42% stake in a project company with rights to develop a site of approximately 30 hectares located in Ho Chi Minh City, Vietnam.

Keppel Land Limited (KLL) is a wholly-owned subsidiary of Keppel Corporation Limited.

Subject to the entry into further definitive agreements and the necessary approval, the purchaser will acquire the shares of Flemington Investments for $53.1 million as consideration, and $45.5 million as repayment of shareholder’s loans of an equivalent amount, in each case subject to completion adjustments.

The sale shares consideration and loan repayment will be paid fully in cash upon completion of the divestment.

The value of the shares was arrived at on a willing-buyer and willing-seller basis based on the adjusted net asset value.

The planned divestment is in line with Keppel’s Vision 2030 asset monetisation plans to unlock capital which can be channelled towards new growth opportunities. Including this Divestment, Keppel has announced about S$3.1 billion of asset monetisation since the launch of the asset monetization programme in September 2020.

Following completion of the divestment, FIPL will cease to be a subsidiary of the company.

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