|MISC_AnncTitle||SALE OF SUBSIDIARY – METRO CHARM HOLDINGS LIMITED|
|TextAns_Description||The Company announces, pursuant to Rule 704(16)(c) of the Listing Manual of the Singapore Exchange Securities Trading Limited, that its subsidiary, Frasers Centrepoint Limited (“FCL”), has through its wholly-owned subsidiary, FCL China Development Pte Ltd, entered into a conditional sale and purchase agreement (“SPA”) for the sale of its entire 100% shareholding interest in Metro Charm Holdings Limited (“MCHL”), a company incorporated in Hong Kong (the “Sale”).
MCHL holds a 100% equity interest in a project development company established in Hainan, the People’s Republic of China (“PRC”), for the proposed development of a hotel and residential villas. MCHL has a paid up capital of HK$10 and the book value of the investment in the aforesaid project is approximately RMB605.1 million (approximately S$127.9 million). The Sale is in line with FCL’s objective to focus on property development in selected key cities in the PRC.
The consideration for the Sale is the Hong Kong Dollar equivalent of RMB949.7 million (approximately S$200.7 million) and was arrived at after negotiations on a willing buyer and willing seller basis. The consideration is payable in cash in 2 tranches upon the satisfaction of the conditions stipulated in the SPA.
The Sale is not expected to have a material effect on the net tangible assets per share of the Group for the current financial year. As regards effect on the earnings per share of the Group, for illustrative purposes only and assuming that the Sale had been completed on 1 October 2007, the consolidated earnings per share (after fair value gains and exceptional items) of the Group for the financial year ended 30 September 2008 would increase from 31.4 cents to 35.5 cents.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Sale.
Anthony Cheong Fook Seng
Group Company Secretary
28 July 2009|