Tan Sri Lim Kang Hoo of Iskandar Waterfront Holdings in his personal capacity as a major shareholder of Ekovest Berhad, Knusford Berhad, Iskandar Waterfront Holdings Sdn Bhd and Iskandar Waterfront City Berhad has proposed the entities to reorg and merge.
In a letter sent to Ekovest board, the major shareholder conveyed his intention to undertake a reorganisation, rationalisation, and merger proposal involving these companies. Ekovest owns approximately 62% of PLS Plantations Berhad as well. He said the proposals are intended to streamline the businesses and assets currently owned and controlled by himself and persons acting in concert, through these various public-listed and non-listed companies, as well as consolidate his direct
shareholdings in these various companies.
The proposals he added will transform the enlarged Ekovest group into a listed public-private partnership conglomerate in Malaysia, with interests in construction, property development, infrastructure, and plantations. He also said the proposals are aimed at mitigating any potential conflict of interest and speculation relating to the alignment of interest of Lim, as a major shareholder of the companies.
Under the proposal, the first nvolves the proposed merger of the construction businesses of Ekovest and Knusford, whereby Knusford acquires the entire issued share capital of Ekovest Construction Sdn Bhd – a wholly-owned subsidiary of Ekovest. The purchase consideration payable by Knusford to Ekovest is proposed to be satisfied via the issuance of new ordinary shares in Knusford at the proposed issue price of RM0.60 per new Knusford share.
The second proposal involves the proposed acquisition by Ekovest of 4 parcels of land spanning approximately 17 acres. These land assets are located in Johor Bahru, and are intended for two (2) potential Transit-Oriented Developments (TOD) along the alignment for the Johor Bahru–Singapore Rapid Transit System Link. The purchase consideration payable by Ekovest to the vendors of TOD 2 & TOD 3 is proposed to be satisfied via the combination of cash and the issuance of new ordinary shares in Ekovest, at the proposed issue price of RM0.60 per new Ekovest share.
The third proposal is the proposed acquisition by Ekovest of at least 51% or more of the issued share capital of Credence Resources Sdn Bhd (Credence), which presently holds 63.13% equity interest in IWH, which in turn holds 34.29% equity interest in IWCity. The purchase consideration payable by Ekovest to the vendors of Credence is proposed to be satisfied via the issuance of new ordinary shares in Ekovest, at the proposed issue price of RM0.60 per new Ekovest share.
The fourth proposal is the proposed merger of the properties and assets of IWH and IWCity into a single entity, through the acquisition by IWCity of the entire issued share capital of all the existing direct subsidiaries of IWH. The purchase consideration payable by IWCity to IWH is proposed to be satisfied via the issuance of new ordinary shares in IWCity to IWH at the proposed issue price of RM0.80 per new IWCity share.
Lim said that given the similar core businesses of the companies, the proposals are aimed to consolidate the assets, resources, and capabilities of the respective parties through Ekovest, in order to strengthen the performance, competitiveness and sustainability of the enlarged conglomerate.
