KUALA LUMPUR (Oct 25): Tropicana Corporation Bhd’s wholly-owned subsidiary Tropicana Development (Penang) Sdn Bhd (TDP) is disposing of its 55% stake in Tropicana Ivory Sdn Bhd (TISB) for RM70.7 million.
In a filing with Bursa Malaysia, the property developer said TDP is selling the stake to Hemat Tuah Sdn Bhd. Upon the completion of the disposal, TDP will no longer hold any equity interest in TISB.
TISB is a joint venture between Tropicana Corp (via TDP) and Ivory Properties Group Bhd (via Ivory Utilities Sdn Bhd) and is principally engaged in property development activities.
“The proposed disposal will enable Tropicana to realize the gains from its investment in TISB, and to conserve cashflow requirement of TISB in order to focus on other project developments,” the group said, adding the total estimated gain from the disposal is RM10 million.
The group said the proceeds from the disposal are expected to fund its working capital and repay its bank borrowings.
The share price of Tropicana Corp fell 0.5 sen or 0.59% to 84 sen today, valuing the group at RM1.24 billion.