Temasek Holdings sells stake in Greentown China

Singapore investment company Temasek Holdings is selling its entire 5.4% stake in the mainland developer Greentown China Holdings<3900>.

Temasek expects to raise up to HK$1.36 billion through the divestment. 82.9 million shares are offered in the price range of between HK16.10 and HK$16.40, which can be translated into a 7.5% discount to Greentown's close of HK$17.40 yesterday.

Credit Suisse Group (CS) is the sole bookrunner for the placement.

Temasek first bought in Greentown's shares during the company's IPO in June last year at a price of HK$8.22, and made additional purchase in the market after the stock had risen about 50%. However, over 40% of its total holdings or 33.5 million shares, were bought at HK$16.35 when Greentown issued new shares at a placement in early May this year.

Shares of the Hangzhou-based property developer have gained 20% since the beginning of this year.

Greentown will announce interim results on September 11. Its profit rose to RMB 1.27 billion last year, compared with RMB 622.7 million in 2005.