City Developments raises stake in Suzhou Global City Genway to 100%

SINGAPORE (Feb 16): City Developments says wholly-owned subsidiary, Global City International, has acquired an additional 30% stake in Suzhou Global City Genway Properties Co from Suzhou Industrial Park Genway Housing Development Group Co.

Following the acquisition which was completed on Nov 30, CityDev’s shareholding interest in Suzhou Global City Genway Properties has increased from 70% to 100%.

CityDev says the acquisition was subject to an open market tender in accordance with regulatory requirements, and that Global City International was awarded the tender at a consideration of RMB550 million (S$113.5 million or RM357 million).

The consideration was funded through the internal resources of CityDev.

The acquisition is not expected to have any material impact on the net tangible assets or earnings of the company or the CityDev group for the financial year ended Dec 31, 2016.

In addition, none of the directors or the controlling shareholder of CityDev has any interest, direct or indirect, in the acquisition.

Shares of CityDev closed 17 Singaporean cents lower today at S$9.17. — theedgemarkets.com.sg

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