Singapore Kwek Leng Beng’s City Developments Exits Cash-Strapped Chinese Subsidiary

Singapore Kwek Leng Beng’s City Developments Exits Cash-Strapped Chinese Subsidiary

BKwek Leng Beng, left, speaks as Sherman Kwek, looks on during a news conference in Singapore, on ... [+] August 11, 2017. City Developments—controlled by billionaire Kwek Leng Beng and his family—has decided to divest its equity stake in Sincere Property Group, avoiding what could be a "long drawn bankruptcy reorganization" for the cash-strapped Chinese subsidiary. In an exchange filing late Friday, the Singapore-based property developer said it has agreed to sell the group's 63. 8% stake in HCP Chongqing Property Development, which holds 80% of Sincere, for $1. "The consideration for the sale shares was agreed upon, taking into account the value of the sales shares, the current liquidity issues and potential bankruptcy reorganization of Sincere," City Developments said in a statement. Concurrent with the divestment of its equity stake in Sincere, the company said it increased its effective stake in Shenzhen Tech Park to 65% by taking over Sincere's interest in the industrial park. The consideration for the additional stake will be offset against City Developments' remaining S$117 million debt exposure to Sincere. "The board is of the view that the Sincere divestment and the Shenzhen agreement are in the best interest of the group as these allow