Mainboard-listed CapitaLand has sold its entire 20 per cent interest in the Macao Studio City project for a cash consideration of HK$658.7 million (S$104.5 million).
CapitaLand’s stake in the casino project is through its one-third ownership of East Asia Satellite Television.
It is selling its stake to its joint venture partner, eSun Holdings, which owns the other two-thirds of East Asia Satellite Television.
CapitaLand said East Asia and New Cotai, which jointly own the Macao Studio City project have been unable to resolve a number of issues. This has led to the delay in the commencement of the project.
In previous announcements, reference has been made to legal proceedings in Hong Kong amongst the involved companies.
CapitaLand said it believes that the breakdown in the relationship among the parties is best resolved through the divestment.
The sale is not expected to have any material impact on the earnings per share of CapitaLand for the financial year ending 31 December 2011.
Source : Channel NewsAsia – 16 Jun 2011