KUALA LUMPUR (Jan 11): Tropicana Corp Bhd, controlled by tycoon Tan Sri Danny Tan Chee Sing, is subscribing 99% of the enlarged issued share capital of Cenang Laris Sdn Bhd and Valley Talent Solutions Sdn Bhd (VTS), which own land and shop-lots at Gohtong Jaya in Genting, Pahang.
In a bourse filing yesterday, Tropicana said it has entered into agreements with Cenang Laris and VTS to subscribe 297 shares and 9,900 shares for RM297 and RM9,900 respectively. Both share subscriptions represent 99% of the respective companies' enlarged issued share capital.
In October last year, Cenang Laris had entered into two sale and purchase agreements (SPAs) with Genting Development Sdn Bhd to purchase 29 parcels of land measuring 176 acres at Gohtong Jaya for RM332.6 million.
During the same time, VTS had entered into a SPA to purchase six parcels of land together with one unit of 3-storey shop-lot from Genting Development for RM16 million.
"The proposed share subscription agreement (SSA) along with its project development come at an opportune time for Tropicana to build upon its landbank in Genting, where it also recently acquired a 112-acre freehold land, located approximately 25 minutes drive down the hill from Genting Resorts hill-top," said Tropicana.
It added that the group’s strategy for landbank acquisition has been to focus on the nation’s main economic regions, namely the Klang Valley, Johor and Genting and to ensure that Tropicana is well represented in key growth corridors within each region.
"The SSA, with the proposed projects developments, are expected to contribute positively to the future earnings of Tropicana," said the group.
The shares acquisition and project developments will be funded by internal funds and bank borrowings.
Barring any unforeseen circumstances and subject to all conditions precedent being fulfilled, the SSA is expected to be completed by the first or second quarter of 2020.
Shares in Tropicana closed unchanged at 90 sen yesterday, bringing a market capitalisation of RM1.31 billion.
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