Tropicana sells Chin Hin shares to its chairman Danny Tan for RM12.5m

• Following the related-party transaction which took place on Feb 15, Desiran Realiti's shareholding in Chin Hin currently stands at 14.71 million shares, representing a 0.83% stake.

KUALA LUMPUR (Feb 21): Tropicana Corp Bhd said its indirect wholly owned unit Desiran Realiti Sdn Bhd has sold 2.65 million shares in Chin Hin Group Bhd for RM12.46 million via a direct business transaction.

The buyer is Tropicana’s executive chairman and major shareholder Tan Sri Danny Tan Chee Sing, who holds a 21.35% direct stake and 33.76% indirect stake in the property developer.

“As the prevailing market prices of Chin Hin shares [have] been on the uptrend for the past six months, the disposal represents an opportunity for Tropicana group to realise a profit of more than 100% based on the average cost of investment of 47 sen per Chin Hin share,” said Tropicana in a Bursa Malaysia filing on Monday (Feb 20).

Following the related-party transaction which took place on Feb 15, Desiran Realiti's shareholding in Chin Hin currently stands at 14.71 million shares, representing a 0.83% stake.

Tropicana’s managing director Dion Tan Yong Chien — Danny's son — is also a director of Desiran Realiti.  

Tropicana said the disposal consideration was arrived at on a “willing buyer-willing seller” basis after taking into consideration the original cost of investment in Chin Hin shares of RM8.2 million and Chin Hin’s closing price of RM4.15 on Feb 14.

Tropicana added that the disposal would improve the group’s cash flow position, with the proceeds received to be utilised for working capital purposes.