Keppel is set to receive cash proceeds of VND7.13 trillion ($354 million) after the divestment of 70% of its stake in Saigon Sports City by its real estate division to two real estate companies in Vietnam.
The final consideration price falls within the expected range of about $344 million to $391 million, announced in September 2024.
Keppel says that the transaction is expected to be completed in 4Q2025, earlier than anticipated. Post-transaction, Keppel will retain a 30% stake in Saigon Sports City, a net gain of $114 million is expected.
The two real estate companies in Vietnam, named HTV Dai Phuoc Company Limited and Vinobly Investment Real Estate Joint Stock Company.
Keppel says that it will work with its partners to develop Saigon Sports City into a landmark in Ho Chi Minh City, featuring Vietnam's one-stop sports, entertainment and lifestyle hub, as well as over 3,000 premium homes. The site has been cleared and the applications for government approvals and permits are underway.
Shares in Keppel closed 12 cents higher or 1.425% up at $8.54 on Aug 6.
