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.