KLV to enter into HOA with Phu Long Real Estate Joint Stock Company

The deal will be done to acquire a 49% interest spread out over 3 residential land plots. 

Keppel Land Vietnam Properties Pte. Ltd., a subsidiary of Keppel Corporation Limited, was announced to be entering in a binding head of agreement (HOA) with Phu Long Real Estate Joint Stock Company.

The deal also includes the acquisition of a 49% interest in three residential land plots, aggregating to a total land size of around 14.2 million hectares. Aggregate cash consideration of around $159.7m was implemented.

An Khanh New City Development Joint Venture Company Limited, which is also included in the agreement as a subsidiary of Phu Long, currently holds the rights to develop the sties. Under the terms stated by the HOA, three project companies in Vietnam will be transferred the sites, after being subject to the necessary approvals.

Each of the investment entities will acquire 49%  of the total shares in each project company, while Phu Long and its related party will hold 51% of the total shares in these companies.

The completion of the acquisition is set to take effect by 3Q 2022, with  expected adjusted net asset value of the Sale Shares as of December 31 2021, standing at around $159.7m (VND2.72 b).