Albedo says reverse takeover deal still on as shares ended lower

SINGAPORE - Shares of steel trader Albedo fell today despite assurances from the company that a proposed reverse takeover (RTO) deal that it's involved in is still on the table.

Albedo's shares ended at 2.7 cents, down 0.4 cent.

It said on Thursday that it is working on sorting out the issues with the vendor Infinite Rewards, which is controlled by Malaysian businessman Danny Tan.

Albedo said representatives from both sides met last Thursday to discuss outstanding matters, adding that discussions are still ongoing.

"The parties are now endeavouring to resolve issues pertaining to the proposed acquisition," it said in the statement.

Both sides are working towards the fulfillment of the conditions in the sale and purchase agreement, it added.

The fate of the $1.9 billion deal has been hanging on an edge with representatives of Infinite requesting last month that the deal be "mutually terminated"

But Albedo has insisted that the agreement is still binding as the deal cannot be aborted unilaterally.

Albedo announced in September that it struck a deal for Infinite to inject several of its Iskandar property into the firm.