Ekovest gets more time to consider IWH-CREC stake buy

·2-min read
Ekovest gets more time to consider IWH-CREC stake buy

Ekovest Bhd has been given more time to think through its plan to acquire a 40% stake in IWH-CREC Sdn Bhd, reported The Edge.

This comes after the group has mutually agreed with Iskandar Waterfront Holdings Sdn Bhd (IWH) for a 30-market day extension, which starts from 22 October till 3 December, for Ekovest to “deliberate and consider as well as to enable the parties to finalise the relevant agreements”.

IWH-CREC is a joint venture (JV) between IWH and China Railway Engineering Corp (M) Sdn Bhd (CREC). IWH holds a 60% stake, while the latter owns the remaining 40%.

The JV, on the other hand, holds a 60% stake in the Bandar Malaysia project, while the Ministry of Finance holds the remaining 40%.

Ekovest announced in September that it was commencing exclusive negotiations to acquire a 40% stake in IWH-CREC that is held by IWH.

This means IWH-CREC will have three shareholders should the proposal goes through, namely CREC (40%), Ekovest (40%) and IWH (20%).

Read about Bandar Malaysia here.

Ekovest and IWH have a common shareholder – Tan Sri Lim Kang Hoo – who owns a 32.4% stake in Ekovest and 63% stake in IWH.

Lim had previously said that the 40% stake in the JV would cost around RM1.5 billion.

In December 2019, IWH-CREC had signed a restated and amended share sale agreement with TRX City Sdn Bhd to acquire a 60% equity interest within Bandar Malaysia’s master developer, Bandar Malaysia Sdn Bhd, for RM7.41 billion.

The multi-billion ringgit project was initially set to start in March, but was delayed because of the Covid-19 pandemic. Lim said that the project is now slated to commence in early 2021.


Read our helpful Guides to learn all about the various property buying, selling and renting tips!

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting