Singapore-listed Keppel has lowered the pricing on the sale of its 70% stake in Saigon Sports City, a real estate development in Ho Chi Minh, from the deal terms announced last year.
Keppel, via its subsidiary Jencity that wholly owns the project, will divest a 35% stake each to local firms HTV Dai Phuoc and Vinobly Investment Real Estate JSC at a price of about 2.59 trillion dong (S$128.5 million or $99.4 million) each, per a Wednesday filing.
The $200-million sale represents a significant drop in price from the announcement made late last year when Keppel was to pay up to 3.61 trillion dong (S$188 million) to Dai Phuoc for the 35% stake and 3.84 trillion dong (S$201.5 million ) to Vinobly for 35% stake, based on net asset values disclosed as of June 30, 2024.
Under the revised terms, Dai Phuoc and Vinobly will each provide a loan of 974.9 billion dong (about S$52.6 million) to Saigon Sports City, enabling the company to partially repay a loan it owes to Jencity, the filing said.
Saigon Sports City holds the development rights over a 64-hectare plot of land in Ho Chi Minh City and is expected to generate meaningful proceeds to fund the asset-light ambitions. The project will feature about 4,300 premium homes as well as Vietnam’s one-stop sports, entertainment, and lifestyle hub when completed, its website said.
Regulatory approvals for the divestment remain pending, and Keppel said the revised terms should not materially impact its earnings per share or net tangible asset value in the current financial year.
