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20 Aug 2013

Albedo enters Iskandar deal, potential RTO

Source: Business Times
By:        Vivien Shiao

Albedo Ltd, a company that trades in steel and other raw materials, has entered into a non-binding memorandum of understanding (MOU) with Temasya Cergas Sdn Bhd. This will see Albedo purchase five parcels of land totalling 308 hectares located in Iskandar, Malaysia from Temasya Cergas.

Albedo will do so by allotting and issuing new ordinary shares to Temasya Cergas, which could potentially result in a potential reverse takeover. The lands acquired by Albedo are located in Gelang Patah, the vicinity of Setia Eco Gardens and are to the north of Iskandar, Malaysia's flagship Nusajaya development. The acquisition cost has yet been finalised.

The lands range from 29 acres to 279 acres each, and are slated for an integrated business park and mixed-use commercial and residential development.

The company said the new acquisition will allow the group to venture into new business areas which have the potential for growth. This comes as it faces weakened profit margins caused by strong competition and the softening demand for steel-related raw materials and consumables.