- In a Bursa Malaysia filing on Friday (April 28), the property developer said it had entered into a settlement and subscription agreement with Tan Sri Tan Chee Sing through his wholly-owned T Shares 1 Sdn Bhd (TSSB), to settle the amount owed.
KUALA LUMPUR (April 28): Tropicana Corp Bhd is issuing 137.68 million new shares to pay off RM180 million that the company owes its founder and group executive vice-chairman Tan Sri Tan Chee Sing. The shares will be issued to a company wholly-owned by Tan at RM1.30 per share.
In a Bursa Malaysia filing on Friday (April 28), the property developer said it had entered into a settlement and subscription agreement with Tan through his wholly-owned T Shares 1 Sdn Bhd (TSSB), to settle the amount owed.
“Since March 2022, Tan has provided various advances to the group amounting to approximately RM251.19 million advances for interest-free, unsecured and repayable on mutual agreement by Tan and the company. There is no written or fixed repayment schedule for the advances,” said Tropicana, who expects the proposed capitalisation to be completed by the third quarter of this year.
The issue price represents the five-day volume weighted average market price of Tropicana shares, up to and including April 27, of RM1.30. The issuance represents 6.1% of Tropicana's enlarged number of shares totalling 2.26 billion after the proposed capitalisation.
Tan has a direct 20.56% stake comprising 435.96 million shares in Tropicana, and an indirect 32.44% comprising 687.90 million shares. He also indirectly holds 207.3 million irredeemable convertible preference shares (ICPS) in Tropicana via Dasen Resources Sdn Bhd.
On completion of the issuance — and depending on whether none or all of Tropicana's outstanding ICPS were converted — Tan will control a direct 19.3% and an indirect 36.56% in Tropicana, or a direct 17.02% and an indirect 40.33%, respectively.
Tropicana shares closed unchanged at RM1.36 a share on Friday (April 28), valuing the company at RM2.93 billion.
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