Tropicana’s sale of Dijaya Plaza goes unconditional

KUALA LUMPUR (April 12): Tropicana Corp Bhd said all the conditions precedent for the proposed disposal of Dijaya Plaza in Jalan Tun Razak here have been satisfied and that the sale and purchase agreement dated Jan 28 has become unconditional. The disposal is expected to be completed in the second quarter this year.

Tropicana is selling the Dijaya Plaza office building to Kenanga Investment Bank Bhd for RM140 million cash, which will be used for working capital and/or to repay borrowings.

Tropicana said in a filing dated Jan 28 that the asset sale comprised a piece of freehold land measuring approximately 3,674 sq m, together with an en-bloc 19-storey office tower with two levels of car park basement containing 322 parking bays.

In a separate filing yesterday, Tropicana said the conditional period for the sale of Sky Express Hotel, has been extended for a further one month for the purchaser to fulfil the last remaining condition precedent, which is to obtain a written approval or confirmation from the Economic Planning Unit for the acquisition.

Tropicana said the conditional period has been extended from April 12 to May 11.

“Barring any unforeseen circumstances, the disposal is expected to be completed in the second quarter of 2016,” it added.

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This article first appeared in The Edge Financial Daily, on April 12, 2016. Subscribe to The Edge Financial Daily here.