SINGAPORE (Dec 23): Boustead Singapore will spin off or “demerge” its real-estate solutions business via a distribution in specie to the shareholders of the company of up to 49% of the issued share capital of Boustead Projects.

The shares of Boustead Projects will then be listed on the Mainboard of the Singapore Exchange by way of an introduction.

Boustead Singapore said the number of Boustead Project distribution shares entitled to shareholders has not yet been determined but assured shareholders they will not be required to pay for the shares received through the proposed distribution.

Following the completion of the proposed distribution in specie, Boustead Singapore will have a direct interest of at least 51% of the total issued share capital of Boustead Projects.

The proposed distribution will be subject to the approval of shareholders at an extraordinary general meeting.

Boustead Singapore’s real-estate solutions business are currently undertaken primarily by its wholly-owned subsidiary, Boustead Projects and the subsidiaries.

The company will first undertake a restructuring exercise to consolidate the company’s real-estate solutions business under Boustead Projects. This includes the payment of a pre-transaction dividend from Boustead Projects to the company.

Following completion of the restructuring exercise, the properties wholly-owned by Boustead Projects group will have an estimated aggregate market valuation of $367.5 million and an aggregate book value of $162.5 million. In addition, the group also owns joint property investments worth about $53 million.

CIMB Bank Berhad, Singapore Branch has been appointed as the financial adviser to the company in respect of the proposed distribution and has also appointed as the issue manager for the proposed listing.

Boustead Singapore closed 0.6% higher at $1.72 today.