EcoWorld Malaysia ends talks with UEM Sunrise, to pursue other corporate proposals, says its chief
Eco World Development Group Berhad (EcoWorld Malaysia) says it will actively pursue other corporate proposals that may be complementary to the group’s present growth plans and strategies.
Its chairman Tan Sri Liew Kee Sin said this following the cessation of talks on the proposed merger with UEM Sunrise Bhd (UEMS).
On October 5, 2020, the UEM Group, which is the unlisted wholly-owned unit of Khazanah Nasional Bhd, had proposed that its subsidiary, UEMS, and EcoWorld Malaysia consider a merger via a share and warrant swap.
A merger of this magnitude would create the largest property company in the country that will be controlled by Khazanah.
Upon completion of the proposed merger, EcoWorld Malaysia will become a wholly-owned subsidiary of UEMS and be delisted.
Both the property companies said at the end of last year that they needed more time to decide on the proposed merger.
In a statement issued today, Liew said following commencement of discussions with UEMS this month and after careful evaluation of the proposed merger by EcoWorld Malaysia’s Board of Directors alongside the group’s own business plans, coupled with the current challenging environment with the re-implementation of Movement Control Order (MCO), it has decided not to pursue the proposed merger further with UEMS.
Liew said the cessation of talks will also enable EcoWorld Malaysia to focus on the group’s own business plans for the financial year 2021 (FY2021).
The property group has set a sales target of RM2.875 billion for FY2021, which is 25 per cent higher than the actual RM2.3 billion sales recorded in FY2020.
“We have got off to a very strong start with RM500 million sales already achieved in the first two months of FY2021. This is a very encouraging result given November and December are typically quiet months for the property sector.
“We will continue to work on further digitalising and improving every aspect of the sales process during the current MCO to push towards attainment of the overall target set for the year,” said Liew.
EcoWorld Malaysia, led by some of the most well-known and respected players in the property industry has secured about 8,325.3 acres of land bank with a total gross development value (GDV) of RM86.9 billion.
The group currently has 20 projects in the Klang Valley, Penang, and Iskandar Malaysia in Johor, comprising affordable houses, upgrader and luxury homes, integrated high-rise developments, and green business parks.
Through its 27 per cent-owned associate and international arm Eco World International Berhad (EcoWorld International), the brand has also extended its reach to the United Kingdom and Australia.
Both EcoWorld Malaysia and EcoWorld International reported a net profit of RM203.4 million and RM190.3 million respectively for the full financial year 2019.
Source: NST