New Straits Times - 25 January 2019 - Tropicana Buys 6 Firms For RM1.85b

25 January 2019

TROPICANA Corp Bhd signed a dozen deals to buy property companies for a combined RM1.85 billion, on the day its founder Tan Sri Danny Tan Chee Sing returned to helm the property developer after a 3 1/2 year hiatus.

Tropicana said it had signed 12 sales and purchase agreements to buy 100 per cent stakes in GP Group, DL Group, TK Group and Acehub Fortune Sdn Bhd, as well as 70 per cent of Suasana Metro Sdn Bhd and 49.9 per cent of Peluang Duta Sdn Bhd.

The acquired companies ovi'n 451.99ha in the Klang Valley and Johor, with potential gross development value (GDV) of RM24.82 billion.

The RM1.85 billion pricing represented a 17.9 per cent discount of the land's indicative market value, said Tropicana yesterday,

Of the price, RM343.7 million will be paid via an issuance of 286.5 million new redeemable convertible preference shares (RCPS) in Tropicana at RM1.20 each, while RM1.51 billion will be satisfied via cash amounting to RM247.1 million, issuance of 823.7 million of Tropicana RCPS at RM1.20 each and assumption of Tan's bank borrowings of RM271.8 million.

Additionally, Tropicana announced that it had signed memoranda of understanding to negotiate the terms of the proposed collaborations with several parties to jointly develop their land.

It will work with Cenang Resort Sdn Bhd tojointiy develop the land at Pantai Cenang in Langkawi, Sinaran Ramah Sdn Bhd for the land in Pulau Rebak Kechik, Pantai Kok Resort Development Sdn Bhd for the land at Pantai Kok and Suci Padu Sdn Bhd and Ibarat Indah Sdn Bhd for the land Pokan Nenas in Johor.

Collectively, the land spans 537.73ha with total GDV of RM6.7 billionOn the same day, Tropicana announced the return of Tan as executive vice-chairman. Tan, who has a 63.56 per cent stake in Tropicana, had in June 2015 announced his retirement from the day-to-day management of the company he founded in 1979.

Tropicana also announced the redesignation of Top Glove Corp Bhd founder and executive chairman Tan Sri Dr Lim Wee Chai from non-executive deputy chairman to non-executive chairman.

"Lim and Ian have been outstanding leaders and proven successful entrepreneurs. We are delighted to be able to tap into these great minds directing us into the next growth stage. Their extensive experience will be instrumental in driving the continued development of the group " said Tropicana.

Tan said through the corporate exercises, Tropicana had added strategic landbank, making it a total of 908.09ha with the combined GDV of RM71.42 billion, "Through the proposed collaborations, Tropicana has access to a further 537.73ha with a GDV of RM6.76 billion. Thus, this month will be the right time for me to return and pursue a full-time role " he added.

Oriental Daily - 25 January 2019 - Tropicana corporation purchases 12 real estate companies

25 January 2019

Tropicana to buy 12 real estate firms for RM 1.85bil

Kuala Lumpur, 24 January 2019 – Tropicana Corp. Bhd. (TROP, 5401, main market, property) announced few of its group’s activities.

Firstly, the group proposed to acquire 12 real estate holding companies at RM 343.7mil. It said the land banks from these companies are located in Klang Valley and Johor, with total 1,121 acres.

Meanwhile, the group reached to an agreement with one of the seller, Tan Sri Dato Danny Tan, to return Tan’s debts of RM 1.51bil that was delayed by these 12 real estate holding companies.

In a statement today, Tropicana Corp. Bhd. said the proposed acquisition would be satisfied via the issuance of new redeemable convertible preference shares (RCPS).

In another words, the group will have to pay RM 1.85bil to support the above-mentioned activity.

The group mentioned the issuance of 286.5mil new RCPS in the group at an issue price of RM 1.20.

The group expected RCPS able to collect RM 1.33bil or 80% of the total acquisition price, whereas balance 20% will be via Tan Sri Dato’ Danny Tan bank borrowings.

Lastly, Tropicana Corp. Bhd. announced the group has signed Memorandum of Understanding (MoU) with five companies to jointly develop few plots of land total 1,328 acres own in Pulau Langkawi and Pekan Nenas, Johor.

The group said the acquisition is expected to facilitate the continuing growth existing land bank in Johor and Klang Valley.

Tan Sri Dato’ Danny Tan as Executive Vice Chairman

Meanwhile, Tropicana Crop. Bhd. announced two of the changes in the group’s human resource, effective immediately.

The group reported to Bursa Malaysia on the re-designation of Tan Sri Dr. Lim Wee Chai from Non-Executive Deputy Chairman to Non-Executive Chairman of the Group and the founder, Tan Sri Dato’ Tan Chee Sing returns as Executive Vice Chairman.

As of the 10^th of this month, Tan Sri Dato’ Danny Tan’s direct and indirect shares in Tropicana Corp. Bhd. are 25.1% and 38.45% respectively.

See Hua Daily - 25 January 2019 - Tropicana Corporation acquire 12 real estate company with RM1.8 billion

Kuala Lumpur, 24 January 2019 – Tropicana Corp. Bhd. (TROP, 5401, main market, property) announced few of its company’s activities.

Firstly, the group proposed to acquire 12 real estate holding companies at RM 343.7mil. It said the land banks from these companies are located in Klang Valley and Johor, with total 1,121 acres.

Meanwhile, the group reached to an agreement with one of the seller, Tan Sri Dato Danny Tan, to return Tan’s debts of RM 1.51bil that was delayed by these 12 real estate holding companies.

In a statement today, Tropicana Corp. Bhd. said the proposed acquisition would be satisfied via the issuance of new redeemable convertible preference shares (RCPS).

In another words, the group will have to pay RM 1.85bil to support the above-mentioned activity.

The group mentioned the issuance of 286.5mil new RCPS in the group at an issue price of RM 1.20.

The group expected RCPS able to collect RM 1.33bil or 80% of the total acquisition price, whereas balance 20% will be via Tan Sri Dato’ Danny Tan bank borrowings.

Lastly, Tropicana Corp. Bhd. announced the group has signed Memorandum of Understanding (MoU) with five companies to jointly develop few plots of land total 1,328 acres own in Pulau Langkawi and Pekan Nenas, Johor.

The group said the acquisition is expected to facilitate the continuing growth existing land bank in Johor and Klang Valley.

Tan Sri Dato’ Danny Tan as Executive Vice Chairman

Meanwhile, Tropicana Crop. Bhd. announced two of the changes in the group’s human resource, effective immediately.

The group reported to Bursa Malaysia on the re-designation of Tan Sri Dr. Lim Wee Chai from Non-Executive Deputy Chairman to Non-Executive Chairman of the Group and the founder, Tan Sri Dato’ Tan Chee Sing returns as Executive Vice Chairman.

As of the 10^th of this month, Tan Sri Dato’ Danny Tan’s direct and indirect shares in Tropicana Corp. Bhd. are 25.1% and 38.45% respectively.

Sin Chew Daily - 25 January 2019 - Lim Wee Chai appointed as Tropicana Chairman; Danny Tan returns, appointed as Vice Chairman

25 January 2019

Tan Sri Lim Wee Chai appointed as Tropicana chairman, Tan Sri Danny Tan return as group vice chairman

Kuala Lumpur, 24 January 2019 – After the announcement of his retirement in June 2015, Tan Sri Danny Tan Chee Sing, founder and the largest shareholder of Tropicana Corp. Bhd. (TROP, 5401, main market, property), is back at the helm of the property developer as executive vice-chairman.

Tan Sri Danny Tan major shareholder with 63.56% stake

Tan Sri Danny Tan who held 63.55% stake in Tropicana after its announcement of retirement from the day-to-day management.

In a statement today, Tropicana announced Tan Sri Lim Wee Chai, 61, has been re-designated from non-executive deputy chairman to non-executive chairman of the group, whereas Tan Sri Danny Tan, 64, return as executive vice-chairman.

After his retirement, two of Tan Sri Danny Tan’s son, Datuk Dickson Tan Yong Loong and Dion Tan Yong Chien, hold the position of deputy group chief executive officer and group managing director of Tropicana respectively.

The current Top Glove Corp Bhd (TOPGLOV, 7113, main market, healthcare) founder and executive chairman Tan Sri Lim Wee Chai, 61, who designated as non-executive deputy chairman in 24 October 2017 holds a 10.3% stake in Tropicana.

Tan Sri Danny Tan, 64, re-designated from chief executive officer to vice-chairman in 7 January 2013 and follow by its retirement announcement in 18 June 2015 due to health condition.

Tan Sri Danny Tan has vast experience in certain industry such as property development, resort, restaurant and leisure, whereas in private companies hold many investment.

Acquisition of assets in cash, potential gross development value (GDV) increased RM 20.5bil

Tropicana Corp. Bhd. announced its proposed acquisitions entail a RM 343.7mil share purchase involving 12 real estate holding companies, RM1.5bil for debt settlement and collaborations with five parties to jointly develop the land at Pulau Langkawi and Pekan Nenas.

In a filing with Bursa Malaysia today, Tropicana announced the acquisition of land bank amounting to 1,116.9 acres under 12 real estate holding companies that located in the Klang Valley and Johor, with the potential gross development value (GDV) of RM 24.82bil and development cost of RM 1.85bil.

The deal will be satisfied via the issuance of 286.5mil new redeemable convertible preference shares (RCPS) in Tropicana at an issue price of RM1.20.

Meanwhile, the remaining RM1.51bil of debt settlement to be satisfied via, issuance of RCPS and assumption of Tan Sri Danny Tan’s bank borrowings.

The proposed acquisitions will increase the group’s potential gross development value (GDV) to RM 20.5bil and alleviate potential conflict of business interests between Tropicana and its major shareholder.

On top of that, Tropicana will enter into joint ventures (JVs) to jointly develop five plots of land with five companies. This include 3 plots of land totaling 53 acres in Pulau Langkawi and 2 plots of land totaling 1,275 acres in Pekan Nenas, Johor.

Upon completion of acquisition, debt settlement, issuance of RCPS, the direct and indirect stake of Tan Sri Danny Tan will increase from 25.2% and 38.5% to 56.6% and 21.7% respectively.

[Picture Caption] Tan Sri Lim Wee Chai designated as non-executive deputy chairman, Tan Sri Danny Tan as vice-chairman.

The Edge Financial Daily - 25 January 2019 - Danny Tan to inject land bank worth RM1.85b into Tropicana

25 January 2019

Tycoon Tan Sri Danny Tan Chee Sing {pic), founder and major shareholder of Tropicana Corp Bhd with a 63.56% stake, is back at the helm of the property developer as executive vice chairman after a three-and-a-half-year hiatus.

Chee Sing, 64, had announced his retirement from the day-to-day management of Tropicana, which he founded in 1979, in June 2015.

At the same time, Top Glove Corp Bhd founder and executive chairman Tan Sri Lim Wee Chai, 61, who holds a 10.296% stake in Tropicana, has been redesignated from non-executive deputy chairman to non-executive chairman of the group.

Chee Sing is the father of Datuk Dickson Tan Yong Loong and Dion Tan Yong Chien, who are the deputy group chief executive officer and group managing director of Tropicana respectively.

The appointments come as Chee Sing injects into the group, what is left of his privately-owned land bank worth RM1.85 billion representing a 17.9% discount as compared to the indicative market value.

The land bank of 1,116.88 acres (451.98ha) under 12 real estate holding companies are located in the Klang Valley and Johor, with the potential gross development value (GDV) of RM24.82 billion.

In a filing with Bursa Malaysia yesterday, Tropicana said under the deal, RM343.7 million of the total RM 1.85 billion will be satisfied via the issuance of 286.5 million new redeemable convertible preference shares (RCPS) in Tropicana at an issue price of RM 1.20.

The remaining RM 1.51 billion for debt settlement will be satisfied via RM247.1 million cash, issuance of 823.7 million RCPS at an issue price of RM 1.20 and assumption of Chee Sing's bank borrowings amounting to RM271.8 million.

Tropicana is also proposing to enter into joint ventures (JVs) with Cenang Resort Sdn Bhd, Sinaran Ramah Sdn Bhd, Pantai Kok Resort Development Sdn Bhd, Suci Padu Sdn Bhd and Ibarat Indah Sdn Bhd to jointly develop four plots of land totalling 1,328.76 acres the five companies own in Pulau Langkawi and Pekan Nenas, Johor. The total estimated GDV for the proposed JV developments is RM6.7 billion.

Meanwhile, Tropicana said the proposed acquisitions are expected to facilitate the continuing growth of its core business as a property developer by increasing its existing land bank in Johor and Kuala Lumpur.

"In addition, the proposed acquisitions will mitigate potential conflict of business interests between Tropicana and its major shareholder (Chee Sing)," it added. I Tropicana noted that the strategic locations of the acquired land in Johor and Kuala Lumpur are expected to contribute positively to the group's future earnings in the medium to long term as the group monetises the acquisition land.

The issuance of the RCPS as part of the purchase consideration and the debt settlement amount will enable the group to conserve its cash balance for the operations and expansion while minimising the potential impact on the cashflow and gearing of the group as opposed to full settlement in cash and/or via bank borrowings, it added.

The proposals are expected to be completed by the third quarter of 2019. In a separate statement, Lim said: "In my role as chairman, I look forward to continuing to assist the group in many initiatives and efforts to deliver value to our shareholders, customers and other stakeholders. I am excited with this latest land injection which was independently valued by professionals." "Tropicana received a discount of 17.9% from market value on the lands and discount from revalued net asset value of the target companies. With the RCPS structure, the capital structure in the ownership of these strategic assets have been optimised. This will also align the interest of Tan Sri Danny Tan with Tropicana," he added.

Chee Sing said upon completion of the latest corporate exercise will bring Tropicana's total land bank to 2,243.93 acres with a combined GDV potential of RM71.42 billion.
"Additionally, through the JVs, Tropicana will have access to a further 1,328.76 acres with a GDV of RM6.7 billion. Thus, January 2019 will be the right time for me to return and pursue a full time role," he added.

This is not the first time Chee Sing has injected his personal properties into Tropicana. In March 2012, Chee Sing injected 73 of his privately-held properties into the group, then known as Dijaya Corp Bhd, for RM948.7 million, making it one of the largest related-party transactions in Malaysia. The aim then was to turn Tropicana into a property developer comparable to its other large competitors such as Mah Sing Group Bhd and S P Setia Bhd.

The deal was satisfied by RM250 million cash and the issuance of a 10-year redeemable convertible unsecured loan stock.

More recently, on Sept 14 last year, the tycoon injected into the group, two plots of land totalling 329.1 acres in Johor, for RM49.05 million or RM40 per sq ft, representing an 11% discount to the indicative market value of RM45 per sq ft as opined by independent registered valuer Messrs C H Williams Talhar & Wong.

The transaction then saw an increase in Tropicana's net and gross group gearing to 0.34 and 0.66 post-acquisition, from December 2017's 0.27 and 0.56 respectively.
Tropicana shares closed down one sen or 1.13% at 87.5 sen yesterday, bringing a market capitalisation of RM 1.29 billion. Over past one year, the stock price has fallen 4.9% from 92 sen.

In comparison, S P Setia's market value stood at RM9.94 billion, while that of Mah Sing was at RM2.26 billion yesterday..