Published September 20, 2013

Albedo in S$774.14m RTO to buy land in Johor's Iskandar

By Angela Tan [email protected]

ALBEDO Limited said on Friday that it has agreed to a S$774.14 million reverse takeover (RTO) that would transform it into a major property developer in Iskandar, Malaysia's special economic zone in the southern state of Johor.

The Singapore steel trading company will issue 34.55 billion new shares representing about 95 per cent of its enlarged issued capital around 2.24 Singapore cents per share.

It will also sell its current operating business to Albedo's Chief Executive Officer, Tai Kok Chuan or his nominee(s).

Albedo has entered into a conditional sale and purchase agreement with Infinite Rewards Inc, a company majority owned by Malaysian tycoon Tan Sri Dato' Danny Tan.

It will buy Infinite's wholly-owned subsidiary, Reflections Oasis Inc, which is in the process of acquiring seven parcels of land in Gelang Patah, Johor, with a total area of 662.7 acres.

Infinite Rewards is owned by Tan Sri Dato' Danny Tan (94%), his sons, Dato' Dickson Tan Yong Loong (2%), Dillon Tan Yong Chin (2%), and his daughter, Diana Tan Sheik Ni (2%).

The parcels of land to be acquired are earmarked for conversion into commercial, industrial and/or residential usage. Based on valuation by Knight Frank Malaysia Sdn Bhd, the aggregate market value of the properties is about RM2.71 billion as at 30 August 2013.

Albedo and Infinite Rewards are also negotiating for the inclusion of two parcels of land of about 233.04 acres to be included in the agreement.

Albedo may carry out a capital reduction exercise or any similar corporate action to distribute any cash or cash equivalent available in the company's account to shareholders prior to completion of the transaction.