Link: https://links.sgx.com/1.0.0/corporate-announcements/QFGGLNZZ8LL463NH/2d3095ac8c37017d691205e2f84bd4d1dcc0e07d14bb9c1a6abc1ef83112e097

Summary:

• The Place Holdings’ unit TPSIPL and Sun Card Limited have agreed to sell their remaining 12.18% interest in New Vision Holding Pte. Ltd. and associated shareholder loans to majority shareholder Hsteel Pte. Ltd. for a total cash consideration of S$21,315,001.

• NVHPL’s main asset is the bare mixed-use-zoned land at 15 Enggor Street (formerly Realty Centre), with the redevelopment into serviced apartments and hotel rooms expected to complete in 2030 and turn cashflow positive in 2031.

• The disposal, classified as a major transaction under SGX rules with consideration equal to about 89% of the company’s market capitalisation, will yield a small disposal gain of S$12,850 and leave group NTA and EPS per share broadly unchanged at 1.32 cents and a 0.04 cent loss respectively.

• Management cites the project’s long payback profile and a desire to reallocate capital towards alternative strategic investments and its digital technology and e-commerce businesses as key reasons for the exit.

• Executive chairman Ji Zenghe and CEO Fan Xianyong, who ultimately control SCL, will bear the bulk of any loss on the investment, and have abstained from board decisions on the deal, which remains subject to shareholder approval at an upcoming EGM.