Catalist-listed Albedo has agreed to acquire six more land parcels from Infinite Rewards, a company controlled by Malaysian tycoon Tan Sri Danny Tan, bringing its land bank in Iskandar Malaysia to 13 parcels of around 478.57ha, media reported.
The move will increase the size of the reverse takeover (RTO) deal between the two companies to more than double, from S$774 million to S$1.86 billion.
As a result, Albedo is set to become a major property developer in Malaysia upon the completion of the RTO.
In September, the steel trading company agreed to purchase seven parcels of land from Infinite Rewards.
The additional six parcels of land belong to Tan and his family.
In a statement, Albedo revealed that the total acquisition price was given at a discount of 16.6 percent of the total market valuation of all the land parcels, and includes a prime commercial site known as Lido Waterfront.
Subject to approval by Albedo’s shareholders, the proposed acquisition will enable the company to venture into new business areas.
It will be funded by Albedo through the issuance of new shares that represent 95 percent of the company’s enlarged issued capital.