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KUALA LUMPUR: Singapore-listed steel trader Albedo Ltd said it has met with representatives from Infinite Rewards Inc, a company controlled by tycoon Tan Sri Danny Tan, to discuss outstanding issues in relation to its proposed S$774.14 million (RM2 billion) reverse takeover deal to buy the property development arm of Infinite Rewards.
Albedo said in a statement yesterday that the discussions are ongoing. “The parties are now endeavouring to resolve issues pertaining to the proposed acquisition, with a view towards the fulfilment of the conditions precedent ... prior to the long-stop date of Sept 19,” it said, acknowledging that Infinite Rewards had requested to mutually terminate the sale and purchase agreement (SPA) on March 21.
“Although the SPA and supplemental agreement have been entered into and as at the date of this announcement have not been terminated ... there is no certainty or assurance as at the date of this announcement that the acquisition will be completed and/or that no changes will be made to the terms,” it said.
It was previously reported by a local daily that there was a possibility that the reverse takeover had been called off due to a breakdown in talks between Albedo and Tan.
In September last year, Albedo announced plans to acquire Reflections Oasis Inc from Infinite Rewards, by issuing 34.55 million new shares to Infinite Rewards at about S$2.24 per share. Post-acquisition, Infinite would own 95% of Albedo.
This article first appeared in The Edge Financial Daily, on Aprill 11, 2014.
