TROP (5401) - Tropicana Corp sells stake in Tenaga Kimia
April 16, 2015 : 10:29 AM MYT
KUALA LUMPUR: Tropicana Corp Bhd is disposing of its entire 73% stake in Tenaga Kimia Sdn Bhd to Austin Powder Asia Pacific for RM194.7 million cash, which will be used to repay debt and for working capital.
The property developer expects to record a net gain of RM48.5 million for its current financial year ending Dec 31, 2015 (FY15) arising from this proposed transaction.
“Tropicana will also benefit from interest savings as a result of the utilisation of the sale proceeds to lower borrowings,” the group said in a statement yesterday.
Tropicana’s wholly-owned unit Tropicana Tenaga Kimia Sdn Bhd yesterday signed an agreement with Austin Powder Asia Pacific for the proposed disposal.
“This proposed transaction is in line with Tropicana’s strategy to dispose of non-core assets and heighten its property focus, as well as part of the group’s ongoing degearing exercise to reduce its borrowings,” said Tropicana (fundamental: 1.3; valuation: 2.4) in the statement.
“Taking into account the sale of 308.72 acres (124.93ha) of Canal City land to Eco World Development Group Bhd for RM471 million, which was completed on March 31, and the impending completion of the sale of 3.14 acres of Bukit Bintang land to a joint venture led by Agile Property Holdings Ltd for RM448 million and the sale of Tropicana City Mall and Office Tower to CapitaMalls Malaysia Trust for RM540 million, Tropicana’s potential net gearing could fall to approximately 0.3 times,” said the group.- The Edge Markets
April 16, 2015 : 10:29 AM MYT
KUALA LUMPUR: Tropicana Corp Bhd is disposing of its entire 73% stake in Tenaga Kimia Sdn Bhd to Austin Powder Asia Pacific for RM194.7 million cash, which will be used to repay debt and for working capital.
The property developer expects to record a net gain of RM48.5 million for its current financial year ending Dec 31, 2015 (FY15) arising from this proposed transaction.
“Tropicana will also benefit from interest savings as a result of the utilisation of the sale proceeds to lower borrowings,” the group said in a statement yesterday.
Tropicana’s wholly-owned unit Tropicana Tenaga Kimia Sdn Bhd yesterday signed an agreement with Austin Powder Asia Pacific for the proposed disposal.
“This proposed transaction is in line with Tropicana’s strategy to dispose of non-core assets and heighten its property focus, as well as part of the group’s ongoing degearing exercise to reduce its borrowings,” said Tropicana (fundamental: 1.3; valuation: 2.4) in the statement.
“Taking into account the sale of 308.72 acres (124.93ha) of Canal City land to Eco World Development Group Bhd for RM471 million, which was completed on March 31, and the impending completion of the sale of 3.14 acres of Bukit Bintang land to a joint venture led by Agile Property Holdings Ltd for RM448 million and the sale of Tropicana City Mall and Office Tower to CapitaMalls Malaysia Trust for RM540 million, Tropicana’s potential net gearing could fall to approximately 0.3 times,” said the group.- The Edge Markets
