Keppel REIT to sell 180m units for S$279.9m

KepCorp's stake in KREIT will decrease to 51.5%.

According to a release, Keppel Corporation Limited announced that its wholly-owned subsidiary, Keppel Real Estate Investment Pte. Ltd. has on 20 May 2013 entered into a sale and purchase agreement, as supplemented, with Goldman Sachs Pte. for the sale of 180 million units, representing 6.7% of the total issued units in Keppel REIT, for a consideration of S$1.555 per Sale Unit.

Pursuant to the terms of the Sale and Purchase Agreement, KREI has agreed to sell, and the Placement Agent has agreed to procure the purchase of, or failing which, to purchase, the Sale Units.

The aggregate cash consideration of S$279.9 million for the Sale Units was arrived at on a willing buyer, willing seller basis taking into account the last transacted price per Unit of S$1.605 on the Singapore Exchange Securities Trading Limited as at 20 May 2013 and the 30-day volume weighted average price per Unit of S$1.5129.

The unaudited book value and net tangible asset value per Sale Unit were S$1.31 and S$1.28 as at 31 March 2013. Completion of the Sale is expected to take place on 27 May 2013.

Upon completion, the Company’s interest in Keppel REIT will decrease from 58.2% (comprising 1,561,550,054 Units) to 51.5% (comprising 1,381,550,054 Units).

The above transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of KCL for the current financial year.