Conglomerate Keppel Corp's S$597 million divestment remained stalled after a minority shareholder of China marina project initiated legal proceedings in Singapore.
Keppel on Tuesday said that the Singapore High Court has granted an application by Sunsea Yacht Club (Hong Kong) to prevent Keppel from completing the sale pending Sunsea's application with the Court of Appeal.
Sunsea is a joint venture company that owns and develops Keppel Cove. Keppel China Marina Holdings owns 80 percent of a joint venture, with Sunsea owning the remaining 20 percent.
Also Read: Keppel gets in legal trouble for S$597 mln Chinese divestment
On December 15, the Singapore High Court dismissed Sunsea's summons for interim relief to prevent the sale from happening.
On December 22, Sunsea sought the High Court's permission to appeal against the dismissal of the summons for interim relief, but was denied by the High Court and ordered to pay costs.
However, Sunsea told the court that it plans to go to the Court of Appeal to appeal the December 22 decision.
The High Court has, therefore, allowed an application by Sunsea to restrain Keppel from completing the divestment until Sunsea's application with the Court of Appeal has been addressed by the higher court.
In a separate statement, Keppel said that it won a government land tender to buy a prime 18.03 hectare residential site in Wuxi, China for 2.53 billion yuan (S$517 million).
Shares in Keppel Corp plunged 4 percent to S$7.17 on the Singapore Exchange.