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Singapore “Flyer” Of The Week: Albedo

albedo Albedo Limited (SGX: 5IB), a company that trades steel and other raw materials, clinches the Singapore “Flyer” of the Week. It has chalked up gains of 71% to $0.041 at the time of writing.

On 20th August 2013, Albedo announced that it had “entered into a non-binding memorandum of understanding exclusively with Temasya Cergas Sdn Bhd which would see Albedo buying five parcels of land in Iskandar, Malaysia, totalling approximately 762 acres”.

Albedo will pay for the five sites (located in Gelang Patah, the vicinity of Setia Eco Gardens and to the north of Iskandar, Malaysia’s Flagship B: Nusajaya Development) by alloting new Albedo shares. This move could result in a reverse takeover of Albedo by Temasya Cergas.

The parcels of land range from 29 acres to 279 acres each and are slated for an integrated business park and mixed commercial and residential developments. The company expects to finalise the deal by 30th August 2013.

The company said that intense competition and the softening of customers’ demand for Albedo’s trading and distribution businesses of steel related raw materials and consumables have eaten into their profit margins. The company foresees the existing core trading businesses to remain challenging. The new move will provide an opportunity for the company to venture into new business areas which have the potential for growth, enhancing the long term interests of its shareholders.

The company is trading at a price-to-book ratio of 7 and it had negative earnings for Financial Year 2012.

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