Tebrau teams up with Tropicana for RM3.7bil project
The Star 27 Dec 13;
PETALING JAYA: Tebrau Teguh Bhd is tying up with Tropicana Corp Bhd to develop a partially submerged site in Johor that will require extensive reclamation works into an RM3.7bil mixed-use project.
It told the stock exchange yesterday that it had signed a pact with a unit of Tropicana to set up a special purpose vehicle, Renown Dynamics Sdn Bhd, to acquire the leasehold land in Plentong, Johor, for RM444.31mil from Tebrau.
Tebrau and Tropicana will hold 30% and 70% stakes respectively in Renown Dynamics.
The land measures 84.61 acres and is partially underwater. Tebrau has agreed to carry out reclamation works to resurface some 60 acres, the cost of which, estimated at RM190mil, will be borne by the company.
It said the Plentong land is 15km northeast of Johor Baru city centre in Kampung Senibong and surrounded by mangrove swamps.
Tebrau expects to record a gain of RM157mil, or 24 sen a share, from the sale, which is to be completed by the second quarter of 2015.
Separately, the Johor-based property developer announced a number of corporate exercises, including a one-for-one rights issue of up to 669.73 million shares at RM1 each with 334.86 million free detachable warrants on the basis of one free warrant for every two rights shares, as well as an employee share option scheme.
The cash call will raise between RM315.85mil and RM669.73mil for the group, the bulk of which has been earmarked for property development.
Although Iskandar Waterfront Holdings Sdn Bhd’s (IWH) stake in Tebrau is expected to jump to 64.09% under the rights issue from 47.16% currently, an application has been made to exempt IWH from making a mandatory general offer.
