Keppel Land is looking to sell a 30-per-cent stake in Vietnamese developer Quoc Loc Phat Joint Stock Company (QLP) for 702 billion Vietnamese dong (S$41.2 million), and eyeing to offload its remaining 15-per-cent stake “at a later stage”.
Keppel Corporation made the disclosure on Monday evening, saying that Keppel Land has signed a sale and purchase agreement with Pham Quang Hung, a shareholder of QLP, for the divestment.
QLP is a Vietnam-incorporated real estate developer, primarily operating in Ho Chi Minh City, Vietnam. Keppel Land holds a 45-per-cent interest in QLP through two subsidiaries. Keppel Corporation said “(Keppel Land) regularly reviews its portfolio and the proposed divestment is in line with (Keppel Land)’s strategy to recycle assets to seek higher returns”.
The purchase consideration will be paid in cash. The sale is expected to be completed by the end of June 2018, and Keppel Corp expects to recognise a gain of about S$13 million from the divestment.