KUALA LUMPUR, 15 JULY: Following the expiration of Putrajaya’s RM7.4 billion sale of 60 percent of the project to a joint venture of IWH, Ekovest Bhd announced today that it will not proceed with its heads of agreement (HOA) with Iskandar Waterfront Holdings Sdn Bhd (IWH) to buy into the Bandar Malaysia project. On Wednesday, it was reported that IWH-CREC Sdn Bhd’s proposed acquisition of 60% of Bandar Malaysia from the Ministry of Finance’s TRX City Sdn Bhd (TRXC) for RM7.4 billion lapsed in May due to the parties’ failure to meet the deal’s pre-conditions.
IWH and China Railway Engineering Corp (M) Sdn Bhd have formed a 50:50 joint venture called IWH-CREC.
“The business wishes to announce that on July 15, 2021, IWH notified the company that the restated and modified share sale agreement inked between TRXC and IWH-CREC had lapsed,” according to Ekovest’s disclosure today.
“As a result of the foregoing, the firm and IWH will no longer proceed with the HOA of December 8, 2020, as it is now deemed null and void,” the statement read.
According to the HOA, Ekovest would own 40% of a special-purpose vehicle, which would control 50% of IWH-CREC. Ekovest indicated at the time that their overall investment commitment for the projected Bandar Malaysia participation and investment was around RM1.48 billion.
Tan Sri Lim Kang Hoo is a common shareholder in both IWH and Ekovest. Lim’s investment vehicle Credence Resources Sdn Bhd owns 63.13 percent of IWH, while he owns 30.8 percent of Ekovest.
Aside from the Bandar Malaysia project, Ekovest also canceled plans to buy 96.27 acres of land in Pulai, Johor, from IWH for RM944.62 million last month, citing the increased number of Covid-19 cases and the statewide lockdown.
The two parties had called off the Iskandar Malaysia land auction for the second time. The deal lapsed the first time because the parties couldn’t agree on pricing, which had been set at RM1.05 billion.
At the noon market break, Ekovest’s shares fell one sen, or 2.53%, to 38.5 sen, valuing the company at RM1.04 billion.
Iskandar Waterfront City Bhd, another company tied to tycoon Lim, remained unchanged at 37.5 sen, valuing the company at RM340.88 million./n
