KepLand sells stake in Indonesian hotel for $8.8m

Divestment gains pegged at S$3-5m.

According to OCBC Investor Research, KPLD reported that it has entered into an agreement for a subsidiary to sell its 50% stake in PT Pantai Indah Tateli, a Indonesian company which owns Hotel Sedona Manado in Indonesia, for USD 7.0m (S$8.8m). 

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The price was arrived at on a willing-buyer, willing seller basis and took into account prices of comparable properties in the vicinity.

We expect some divestment gains in the ballpark of S$3.0-5.0m from this sale, given that the unaudited book value attributable to KPLD’s stake was S$3.2m as at 31 Aug 2013. Given the size of the transaction, however, the impact on RNAV is likely to be limited.