SINGAPORE, Sept 20 (Reuters) - Albedo Ltd has agreed to aS$774 million ($621 million) takeover by a company controlled byMalaysian businessman Danny Tan in a deal that will see Albedojoin international property developers buying up land inMalaysia's sought-after Iskandar region.
Shares of Albedo fell as much as 13 percent inearly trading in Singapore in response to a transaction thatwill see existing investors' holdings diluted.
Singapore-based Albedo plans to issue 34.55 billion newshares at S$0.0224 per share to Tan's Infinite Rewards Inc,equal to about 95 percent of the enlarged Albedo's stock.
Albedo will use proceeds to buy Reflections Oasis Inc, asubsidiary of Infinite Rewards which is in the process ofacquiring seven parcels of land in Malaysia for commercial,industrial and residential development.
Based on an estimate by Knight Frank Malaysia Sdn Bhd, theaggregate market value of the land is about 2.71 billion ringgit($856 million) as of Aug. 30.
The development of the Iskandar region, in Malaysia'ssouthern state of Johor, is spearheaded by the country's stateinvestment arm Khazanah Nasional Bhd and hasattracted companies including CapitaLand Limited,Southeast Asia's largest property developer.
Shares in Albedo fell to S$0.066 in early trading, comparedwith a record high of S$0.077 hit as recently as Sept. 12.
Albedo had a market capitalisation of S$115 million at theclose of the previous trading session, before the InfiniteRewards deal was announced.
For a company statement, click ($1 = 1.2465 Singapore dollars) (Reporting by Rujun Shen; Editing by Kenneth Maxwell)
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