RED ALERT ON KHALID: Tycoon Danny Tan's Tropicana inks supplementary deal with MB Selangor

PETALING JAYA - Tropicana Corp Bhd has entered into a supplementary agreement with Menteri Besar Selangor (Perbadanan) (MBI) and Permodalan Negeri Selangor Bhd (PNSB) for the acquisition of 1,172 acres of land in Kota Kemuning, Shah Alam.

In a filing with the stock exchange, Tropicana said the key terms in the supplementary agreement aimed at accelerating the payment of part of the purchase price for the sub-sale land amounting to RM173 million instead of RM85 million, whereby there will be a waiver in interest for the amount paid.

Earlier, the Selangor State Government had decided to cash in early on land promised to Tropicana, demanding RM844.2 million after the latter signed a land deal which saw it pocket RM470.67 million for 308.72 acres.

The supplementary agreement will also see an internal restructuring involving MBI and PNSB.

The land area, previously known as "Canal City", was originally alienated to MBI but Tropicana became the beneficiary after PNSB entered into a sale and purchase agreement with Tropicana's subsidiary Sapphire Index Sdn Bhd in April 2013. -Sundaily