Keppel gets in legal trouble for S$597 mln Chinese divestment

Conglomerate Keppel Corp's S$597 million divestment hit a roadblock on Tuesday after a minority shareholder of China marina project initiated legal proceedings in Singapore.

Marina at Keppel Cove
Marina at Keppel Cove. Company's website.

Conglomerate Keppel Corp's S$597 million divestment hit a roadblock on Tuesday after a minority shareholder of China marina project initiated legal proceedings in Singapore.

Keppel Land China (KLC), a unit of Keppel Land, last month said it will sell its entire stake in in Sunsea Yacht Club, a Chinese waterfront residential and recreational development, to Delight Prime.

On Tuesday, Keppel said its unit KLC and KLC's fully owned unit Keppel China Marina Holdings (KCMH), both have been served with writs of summons by Sunsea Yacht Club seeking to stop KLC from selling KCMH.

Sunsea is a joint venture company that owns and develops Keppel Cove, an integrated residential and marina lifestyle development on Modao Island in Zhongshan, China. KCMH owns 80 percent of a joint venture, with Sunsea owning the remaining 20 percent.

The company said court will hear the summons for interim relief in the later part of the week commencing December 4.

Keppel said it will vigorously defend against the summons for interim relief and the suit.

Shares in Keppel Corp rose 0.7 percent to S$7.41 on the Singapore Exchange. The stock has risen 43 percent in an year.

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