Firm’s subsidiary KBEE also gets nod from SGX to spin off its unit Oiltek
Construction, property and engineering firm Koh Brothers Group (KBG) said it has sold 22 per cent – or 15 of the 69 units – of its freehold luxury residence Van Holland as of Wednesday.
These include the 10 units moved during the Holland Village condominium’s launch weekend in January.
KBG has built a 360-degree virtual tour of various units in Van Holland, or a digital sales kit with interactive features, to overcome the “difficulties presented” amid the Covid-19 outbreak, it said in a bourse filing.
KBG expects a negative impact on its business and the group’s financial results for the current financial year ending Dec 31, in view of the pandemic and any unforeseen circumstances that may arise from that.
It added that the group remains “financially prudent and maintains operational agility to conserve essential resources to prepare for the post-pandemic recovery process”.
Located on the site of the former Toho Mansion, which was sold en bloc in March 2018 for $120.4 million, Van Holland offers a mix of unit types and sizes ranging from 495 sq ft to 1,991 sq ft and is expected to be ready for move-in in March 2023.
Separately, Koh Brothers Eco Engineering (KBEE) disclosed that the Singapore Exchange (SGX) has no objection to the proposed spin-off of its unit Oiltek, although KBEE is reviewing the situation in view of the Covid-19 pandemic and market sentiment.
KBG has a 77.29 per cent stake in KBEE as of March 19, according to KBEE’s latest annual report.
In January, KBEE said that it plans to spin off its indirect subsidiary Oiltek and list it either on SGX’s Catalist board, or on Bursa Malaysia’s Ace Market.
KBEE has about an 80 per cent stake in Oiltek, while Oiltek’s wholly-owned subsidiary Oiltek Nova Bioenergy will be spun off for the proposed listing as well.
The proposed listing will also include Oiltek Nova Bioenergy, a subsidiary of Malaysia-based Oiltek.
These firms are involved in the business of building edible oil refining plants and provide their services to clients across 32 countries.
In a regulatory filing on Wednesday, KBEE said that it is “not too concerned” about project cancellations or defaults by clients due to Covid-19, as its clients are primarily government agencies or government-linked entities.
Meanwhile, KBG’s proposed dividend has been reduced to 0.25 cent from 0.4 cent, whereas KBEE’s proposed dividend has been reduced to 0.02 cent, from 0.05 cent.
In the light of this, the shareholders of both companies had asked if the proposed director fees and management remuneration could be similarly reduced “in the spirit of alignment of interest”.
KBG and KBEE separately said that they have implemented a headcount freeze and that executive directors, management and staff have taken a pay cut with effect from April this year.
“Source:[Koh Brothers sells 22% of its Holland Village luxury condo] © Singapore Press Holdings Limited. Permission required for reproduction”
