<article>Two subsidiaries of Keppel Corporation have proposed to divest their entire stakes in investment holding company Fernland Investment Pte Ltd for $10.86 million.</article>

Two subsidiaries of Keppel Corporation have proposed to divest their entire stakes in investment holding company Fernland Investment Pte Ltd for $10.86 million.
Fernland owns 78.58% of the paid up charter capital in a Vietnamese incorporated company, which holds an office building in Hanoi.
The proposed divestment is in line with Keppel Land&#8217;s, one of the subsidiaries, strategy to actively recycle capital to maximise returns.
According to a <a href="http://infopub.sgx.com/FileOpen/Sale%20of%20Entire%20Interest%20in%20Fernland.final.ashx?App=Announcement&amp;FileID=387307" target="_blank">filing</a>, Keppel Land Limited (KLL) and Kepventure Pte Ltd (KVPL), have agreed to sell their stakes in Fernland to Prime Value Asia Limited.
KLL and KPVL will be paid 20 per cent of the consideration in advance, with the balance being paid before the completion date.
The consideration was &#8220;arrived at on a willing buyer willing seller basis taking into account the future business prospects of Fernland&#8221;. Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/cdl-keppel-land-unit-join-hands-for-for-1-1b-singapore-office-venture-23696/">CDL, Keppel land unit join hands for S$1.1b Singapore office venture</a>
The move is in the backdrop of an asset consolidation exercise by Keppel as the firm seeks to grow its asset management business.
Currently, Keppel&#8217;s market capitalisation stands at S$8.81 billion ($6.17 billion). The company is expected to undergo more difficulty this year, according to The Motley Fool.
An <a href="https://www.fool.sg/2016/01/26/why-keppel-corporation-limited-may-be-in-for-more-pain-ahead/" target="_blank">analysis</a> of Keppel notes that the value of its stock has declined by 27 per cent in 2015, with its growth in inventory and accounts receivable outpacing sales-growth in recent quarters.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/temasek-said-to-discuss-potential-keppel-sale-of-m1-reit-stakes-28550/">Singapore: Temasek exploring options of sale of portfolio firm Keppel’s holdings in M1, REIT</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/keppel-corp-to-consolidate-various-holdings-into-single-firm-28385/">Keppel Corp to consolidate S$26b in various asset management businesses into single firm</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/sg-dealbook-keppel-reit-divests-sydney-property-for-a160-million-keppel-land-acquires-stake-in-local-mall-for-s51-4m-27376/">SG Dealbook: Keppel Reit sells Sydney property for S$158m, Keppel Land acquires stake in local mall for S$51.4m</a>

Singapore: Keppel units to offload stakes in Fernland Investment for $10.8m

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Singapore: Keppel units to offload stakes in Fernland Investment for $10.8m

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