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