SINGAPORE (Mar 5): Keppel Corporation has acquired a 49% stake in Taicang Xuchang Property (TXPC) for RMB498 million ($97 million), the group reported on Thursday.
TXPC owns a residential site spanning 58,526 sqm in New District, Taicang city in the Jiangsu province of China.
The deal was inked by Keppel Land, through its indirect wholly-owned subsidiary, Romeo Private Limited.
Following the acquisition, TXPC has become an associated company of Keppel.
Keppel says that payment for the acquisition, which is slated to take place in 1QFY2020, will be settled in cash.
The consideration was arrived at on a willing buyer willing seller basis taking into account the agreed value of the property.
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Keppel says that as at end-December, the adjusted net tangible asset value of the property, based on its value attributable to the share sales, stood at RMB498 million.
“The adjusted net tangible asset value, based on the agreed value of the property attributable to the sale shares, was approximately RMB498 million as at 31 December 2019.
Keppel notes that the acquisition is not expected to have any material impact on either the net tangible assets per share, or earnings per share, or the company for the current financial year.
Shares in Keppel closed eight cents lower, or 1.25% down, at $6.31 prior to the announcement.
