Utusan Borney (Sarawak) - Tropicana proposes to buy 12 real estate firms for RM 1.85bil

Kuala Lumpur - Tropicana Corporation Bhd (TCB) has entered into 12 conditional share purchase agreements with Tan Sri Tan Chee Sing (TSDDT) and / or persons connected to him for the proposed acquisition of 12 real estate holding companies for RM 1.85bil.

In recent statement, TCB said the proposed acquisition would be satisfied via the issuance of new redeemable convertible preference shares (RCPS).

“Out of the total purchase consideration, RM 343.7mil will be satisfied via the issuance of 286.5mil new RCPS in TCB at an issue price of RM 1.20.

““Another RM 1.51bil for debt settlement will be satisfied via RM 247.1mil cash, issuance of 823.7mil RCPS at an issue price of RM 1.20 and assumption of TSDT’s bank borrowings amounting to RM 271.8mil,” it said.

The proposed acquisition is expected to facilitate the continuing growth of the group’s core business as a property developer by increasing its existing land bank.

TCB said the land bank from the companies, located in the Klang Valley and Johor; totalled 452 hectares (ha) has potential gross development value (GDV) of RM 24.82bil.

Besides, the group also signed a memorandum of understanding to negotiate the terms of the proposed collaborations with Cenang Resort Sdn. Bhd., Sinaran Ramah Sdn. Bhd., Pantai Kok Resort Development Sdn. Bhd., Suci Padu Sdn. Bhd. and Ibarat Indah Sdn. Bhd.

TCB also announced the redesignation of Tan Sri Dr. Lim Wee Chai from Non-Executive Deputy Chairman to Non-Executive Chairman of the group, while TSDDT, the company’s founder returns as Executive Vice Chairman. - Bernama