Kim Heng Ltd. Cancels Proposed Sale of 48 Penjuru Road Property to Greentec Energy

Key Developments

• Proposed Sale Cancelled: Kim Heng Ltd. has announced the cancellation of the previously proposed sale of its property at 48 Penjuru Road, Singapore 609152, to Greentec Energy Pte. Ltd.
• Reason for Cancellation: The deal was terminated due to JTC’s non-approval. Specifically, Greentec Energy did not meet JTC’s requirements for purchasing a waterfront yard facility.
• Refund of Deposit: As a result of the cancellation, Kim Heng’s subsidiary, Kim Heng Marine & Oilfield Pte. Ltd. (the Vendor), will refund the full cash deposit of S\$945,000 (equivalent to 7% of the sale price) to Greentec Energy. This refund will be made without any interest or deductions, as stipulated in the Option to Purchase (OTP) agreement.
• OTP Null and Void: The conditional Option to Purchase is now null and void, and there are no further obligations for either party under this agreement.
• Financial Impact: The company has stated that this cancellation is not expected to have any material adverse impact on Kim Heng’s consolidated net tangible assets or earnings per share for the financial year ending 31 December 2026.
• Future Plans: Kim Heng Ltd. will continue to seek suitable buyers who meet JTC’s requirements and will provide further updates to shareholders as material developments occur.

Important Points for Shareholders

• Potential Price Sensitivity: While the cancellation of the sale itself is not expected to materially impact the company’s financials, it may still be viewed as a setback in the monetisation of the Group’s assets. Investors should monitor future announcements regarding new potential buyers, as any successful transaction could positively affect the company’s cash flow and balance sheet.
• Ongoing Sales Process: The Group’s continued efforts to sell the property indicate that management is actively seeking to unlock value from its asset base. Progress or setbacks in this regard could influence investor sentiment and, consequently, the share price.
• Regulatory Oversight: The involvement of JTC and their requirements for waterfront yard facility buyers underscore the importance of regulatory compliance in such transactions. Changes in regulations or successful navigation of these requirements may also impact the company’s strategic options.

Additional Details

• The announcement was signed by Executive Chairman & CEO, Tan Keng Siong Thomas, on 28 April 2026.
• The announcement has been reviewed by the company’s sponsor, SAC Capital Private Limited, but not examined or approved by the Singapore Exchange Securities Trading Limited (SGX-ST).
• Shareholders or interested parties can contact Mr Benard Lim at SAC Capital for further enquiries.

Investor Takeaway

Investors should note that while the failed sale does not pose an immediate financial risk, the outcome highlights the challenges the company faces in asset divestment under current regulatory conditions. Future success in securing a buyer for the Penjuru Road property could be a positive catalyst for the share price. Shareholders are advised to stay alert for further updates from the company regarding progress in this matter.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information is based on company announcements and may be subject to change.

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