<article><p>A wholly-owned unit of property developer <span style="color: #000080;"><strong><a style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18px; color: #000080;" href="dealstreetasia.com/tag/capitaland" target="_blank">CapitaLand</a></strong></span>, CapitaLand China Holdings (CLC), has bought out the remaining redeemable preference shares in its Chinese unit, CapitaLand China Development Fund Pte Ltd. (CCDF), for a consideration of $50.8 million.<i>.</i></p></article>

<p>A wholly-owned unit of property developer <span style="color: #000080;"><strong><a style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18px; color: #000080;" href="dealstreetasia.com/tag/capitaland" target="_blank">CapitaLand</a></strong></span>, CapitaLand China Holdings (CLC), has bought out the remaining redeemable preference shares in its Chinese unit, CapitaLand China Development Fund Pte Ltd. (CCDF), for a consideration of $50.8 million.<i>.</i></p>
<p>Post-acquisition, CCDF has become a wholly-owned subsidiary of CLC.</p>
<p>Currently, CCDF and its affiliated firms invest in residential development projects in the mainland Chinese market. This acquisition will enable CLC to maintain full control over the CCDF&#8217;s business strategy and project operations.</p>
<p>CLC conducted this acquisition by purchasing the remaining <span style="color: #000080;"><a style="color: #000080;" href="http://www.biztreemgmt.com/wordpress/preference-shares/" target="_blank"><strong>redeemable preference shares (RPS)</strong></a></span> in CCDF &#8211; which represented 62.5 per cent of the total issued redeemable preference share capital of CCDF &#8211; from external CCDF shareholders via CLC’s wholly-owned subsidiary, CapitaLand China Development Fund Management Pte. Ltd (CCDFM).</p>
<p>CCDFM owns all CCDF&#8217;s ordinary shares in CCDF.</p>
<p>Prior to the purchase, CLC owned preference shares representing 37.5 per cent of the total issued RPS capital of CCDF. The consolidated net asset value (NAV) of the acquired shares &#8211; excluding cash advanced by CCDF to external shareholders &#8211; is $37.9 million (approximately S$51.0 million) as at 30 June 2015.</p>
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<p>The deal was negotiated through an arm’s length process and agreed on a willing-buyer willing-seller basis, accounting for the consolidated NAV and the financial performance of the CCDF group of companies.</p>
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<p>CapitaLand is expected to recognise a net gain of approximately S$18 million ($13.1 million), arising mainly from the realisation of foreign currency translation reserves.</p>
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<p>Based on unaudited consolidated financial statements of CapitaLand Group as per 31 March 2015, with the acquisition taking effect from 1 January 2015, the impact on the earnings per share for CapitaLand Group for 1Q 2015 would be an increase from 3.8 Singapore cents to 4.2 Singapore cents. The acquisition taking effect after 1Q 2015 would have no material impact on its financial health.</p>
<p><strong>Also Read:</strong><em><strong> <span style="color: #ff0000;"><a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/sg-realty-dealbook-abterra-buys-60-stake-in-beijing-property-for-s78-9m-oxley-in-s160m-forward-sale-of-195-units-9689/">SG Realty Dealbook: Abterra buys 60% stake in Beijing property for S$78.9m, Oxley in S$160m forward sale of 195 units</a></span></strong></em></p>
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CapitaLand has increased its holdings in a Chinese unit, CCDF, and acquires preference shares for US$50.8 million, making CCDF a direct subsidiary.

CapitaLand increases stake in China unit for $50.8m

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CapitaLand increases stake in China unit for $50.8m

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