Singapore's Albedo in $621 mln takeover by Infinite Rewards
SINGAPORE, Sept 20
SINGAPORE, Sept 20 (Reuters) - Albedo Ltd has agreed to a S$774 million ($621 million) takeover by a company controlled by Malaysian businessman Danny Tan in a deal that will see Albedo join international property developers buying up land in Malaysia's sought-after Iskandar region.
Shares of Albedo fell as much as 13 percent in early trading in Singapore in response to a transaction that will see existing investors' holdings diluted.
Singapore-based Albedo plans to issue 34.55 billion new shares at S$0.0224 per share to Tan's Infinite Rewards Inc, equal to about 95 percent of the enlarged Albedo's stock.
Albedo will use proceeds to buy Reflections Oasis Inc, a subsidiary of Infinite Rewards which is in the process of acquiring seven parcels of land in Malaysia for commercial, industrial and residential development.
Based on an estimate by Knight Frank Malaysia Sdn Bhd, the aggregate market value of the land is about 2.71 billion ringgit ($856 million) as of Aug. 30.
The development of the Iskandar region, in Malaysia's southern state of Johor, is spearheaded by the country's state investment arm Khazanah Nasional Bhd and has attracted companies including CapitaLand Limited, Southeast Asia's largest property developer.
Shares in Albedo fell to S$0.066 in early trading, compared with a record high of S$0.077 hit as recently as Sept. 12.
Albedo had a market capitalisation of S$115 million at the close of the previous trading session, before the Infinite Rewards deal was announced.
For a company statement, click ($1 = 1.2465 Singapore dollars) (Reporting by Rujun Shen; Editing by Kenneth Maxwell)