Keppel Land through its wholly-owned subsidiary is acquiring a 4% stake in Kingsdale Development (KPDL) from Prime Growth Investments for US$6 million ($8.3 million).
Keppel Corp — through its wholly-owned subsidiaries — currently holds 86% of the issued share capital of KDPL, while Prime Growth and another third party hold 4% and 10% of the issued share capital respectively.
The completion of the transaction is expected to take place by 4Q2022. Following the completion, Keppel’s interest in KPDL will increase to 90%.
KDPL has an 80% stake in Spring City Golf and Lake Resort, a golf resort located in Kunming, China. The transaction will allow Keppel to better execute its plans to realise value from the golf resort, the company said in a filing.
The transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.
Shares in Keppel closed 1 cent higher or 0.13% up at $7.41.
