Keppel Land to delist Evergro from Singapore Exchange
By Nicholas Fang,
SINGAPORE: Property developer Keppel Land (KepLand) and its subsidiary Evergro Properties have announced the proposed voluntary delisting of Evergro from the Singapore Exchange.
KepLand said on Sunday the move would allow it to combine the operational expertise, industry knowledge and extensive networks of both companies. This would then allow KepLand to be in a stronger position to capture opportunities and grow in the China market.
KepLand group chief executive officer Kevin Wong said in a statement: “It provides us with a stronger platform to maximise the potential of our existing portfolio and collective strengths as we continue to grow Keppel Land as the choice developer of homes in China.”
Under the delisting proposal, Evergro shareholders can choose to receive 1,000 new ordinary KepLand shares for every 7,000 Evergro shares. This represents a premium of approximately 21.1 per cent to Evergro’s last transacted price on July 10, 2009, of S$0.25 per share.
Alternatively, they could opt to accept S$290 in cash for every 1,000 Evergro shares, a premium of 16 per cent to the last transacted price.
KepLand has a direct interest of approximately 85.38 per cent in Evergro. The proposed delisting will cost it up to S$54 million in cash if all accepting Evergro shareholders elect to receive cash for their shares.
KepLand said this would be financed from internal resources.
Merrill Lynch has been appointed as financial adviser to KepLand. Full details of the delisting proposal will be sent in a circular to Evergro shareholders in due course.
In light of the latest proposal, Evergro said it would delay the release and issue of its second quarter results, originally slated for July 16, 2009. It will now release the results no later than August 14, 2009.
- CNA/so
Source : Channel NewsAsia - 13 July 2009
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