Malaysian developer Danny Tan will transfer some property assets into Singapore-listed Albedo Ltd., and in return acquire a controlling stake in the company.
Albedo, a Singapore-based operator of an iron and steel foundry, plans to acquire Reflections Oasis Inc. from Infinite Rewards Inc., a company controlled by Tan, for S$774.1 million ($621 million), the company said in a statement to the Singapore stock exchange today. Albedo will pay for the acquisition by issuing 34.55 billion new shares to Infinite Rewards at about 2.24 Singapore cents a share. Post the acquisition, Tan’s Infinite will own 95 percent of Albedo.
Albedo is seeking to expand its business into property development as it expects the group’s existing trading businesses to remain challenging amid increasing competition and weaker demand for its steel-related raw materials erode its profit margins, the company said in the statement.
In purchasing Reflections Oasis, Albedo will acquire seven land plots in Iskandar in Malaysia valued at 2.7 billion ringgit ($853 million) and is in negotiations to purchase an additional two plots, according to the statement.
Tan is the group executive vice chairman of Kuala Lumpur-listed Tropicana Corp., a Malaysian property developer, according to the statement.