Daily news - 4 Sep

CapitaLand reaps $163m gain from Capital Tower Beijing sale
CapitaLand –Has entered into a share purchase deed for the sale of its indirect wholly owned subsidiary Hua Lei Holdings, which indirectly owns 100% of Capital Tower Beijing. CapitaLand said the consideration of US$352m takes into account the assignment of a shareholder's loan of US$166m and values Capital Tower Beijing at US$488m. CapitaLand said it will obtain net cash flow of about $498m and expects to recognise a gain of $163m. It said Capital Tower Beijing had been intended as a core long-term asset and the divestment following an unsolicited offer will allow it to redeploy the capital to undertake more developments in China. Capital Tower Beijing was completed in 2006. CapitaLand said it received unsolicited offers from 'several prospective investors' but would only say that the buyer is a Fortune 500 company that hopes to set up its headquarters in Beijing. It is understood that CapitaLand has its Beijing office in Capital Tower Beijing and has no plans to move. CapitaLand said Capital Tower Beijing had been intended as a core long-term asset, but that divestment will allow it to redeploy the capital to undertake more developments in China.

Swiber to sell and lease back 5 support vessels
Swiber Holdings – Will sell and lease back five offshore support vessels for US$225m as it continues its asset-light expansion strategy. The deal, brokered by Norwegian ship leasing arranger RS Platou Finans Shipping, will see Swiber unit Kreuz Engineering selling three anchor handling, towing and supply (AHTS) vessels, as well as two diving support vessels (DSVs), to units of RS Platou and Atlantis Navigation respectively. They in turn will lease the five vessels back to another Swiber unit, Kreuz Offshore Marine, on a bareboat charter for 10 years. The US$225m sale price is at a slight premium to the US$207m net asset value of the vessels, which are currently under construction and due for delivery between next year and 2010. Swiber will use the excess US$18m proceeds from the disposal to acquire new vessels for its future expansion. The arrangement will help the company finance its fleet expansion plan, especially for deepwater and subsea vessels, without straining its balance sheet, and improve cashflow, while also allowing Swiber to maintain full operational and commercial control over the vessels.

Source: Kim Eng