Monday, December 16, 2013
Albedo spreads its wings further into the Iskandar game, after agreeing to buy an additional six parcels of land from Malaysian tycoon, Tan Sri Dato’ Danny Tan in a move that will increase the size of the reverse takeover (RTO) deal by more than twofold to $1.86b. The purchase consideration was at a 16.6% discount to the aggregate market valuation of all the land parcels, which consists mostly of agricultural land, and a prime waterfront commercial site. Albedo first agreed to buy seven parcels of land from Tan Sri Dato’ Tan’s Infinite Rewards Inc in Sept13, and the latest additional six land parcels will bring Albedo’s Iskandar landbank to 13 parcels of about 1,182.58 acres. Albedo will pay for the land parcels to be acquired by issuing 39.5b new shares at 4.7¢ per share to the vendor, representing 95% of the enlarged issued capital of the Company. Albedo will also consolidate its existing shares on a seven-to-one basis, and is planning to issue 260m warrants which are convertible to 260m shares. Separately, Albedo is also negotiating with Kawasan Mestika Sdn Bhd to acquire Kawasan’s entire issued capital which holds or will hold a 228-acre property in Pulai, north of Iskandar’s Nusajaya Development. Valuations are meaningful at this point of time, as the group is still undergoing its potential RTO and book building process.