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GEORGE TOWN (Sept 23): Tropicana Corp Bhd's special purpose vehicle (SPV) Tropicana Danga Senibong Sdn Bhd (TDSSB) has cancelled its acquisition of a 34.2-ha leasehold land meant for a RM3.7 billion mixed development project in Johor Baru, Johor.
In a filing with Bursa Malaysia, the group said TDSSB (formerly known as Renown Dynamic Sdn Bhd) has exercised its right to terminate the sale and purchase agreement (SPA) signed on Dec 23, 2013, as the conditions precedent were not fulfilled in accordance with the SPA's provisions.
However, it did not specify which provisions have not been fulfilled.
Recall that Johor-based developer Tebrau Teguh Bhd had, in December 2013, proposed the establishment of a joint venture with Golddust United Sdn Bhd, a wholly-owned unit of Tropicana, to jointly develop the said land in Mukim Plentong, Johor Bahru,
The SPV, Renown Dynamics, would acquire the land, which is partially under water and needs to be reclaimed, for RM444.3 million from Tebrau Teguh.
Tebrau Teguh would hold 30% in the SPV, which would develop the leasehold land, while 70% would be taken up by Golddust United.
Tropicana had said then that the land acquisition was aimed at increasing its land bank at strategic locations, particularly Johor, for its future property development and investment activities in the region.
Tropicana closed 1.5 sen or 1.68% higher at 91 sen for a market capitalisation of RM1.3 billion.
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