SINGAPORE, Sept 20 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)