Hong Kong: Orient Overseas (International) (OOIL) has announced the sale of the entire share capital of Orient Overseas Developments (OODL), a wholly-owned subsidiary engaged in property development and investment in China, to CapitaLand China (RE) Holdings for US$2.2 billion in cash.
As part of the transaction, OOIL will also assign and transfer a US$1.046 billion shareholders' loan to CapitaLand. OOIL will retain its 7.9 percent interest in Beijing Orient Plaza and continue to wholly own Wall Street Plaza.
Morgan Stanley acted as sole financial advisor to OOIL on the transaction. The transaction is expected to be completed by March 31, 2010.
"The transaction represents the culmination of a lengthy strategic review of our property development and investment business," said OOIL's Chairman, C C Tung. "We believe that it will strengthen the position of our remaining core business."
"OOIL intends to use the sale proceeds from the transaction for general working capital purposes and to fund growth opportunities in its core business of container transport and logistics services," said Ken Cambie, Chief Financial Officer of OOIL. "OOIL will undertake a fuller review of the potential uses of proceeds from the transaction in due course."
