PETALING JAYA: Tan Sri Lim Kang Hoo, in his personal capacity as a major shareholder of Ekovest Bhd, Knusford Bhd, Iskandar Waterfront Holdings Sdn Bhd (IWH) and Iskandar Waterfront City Bhd (IWCity), has proposed to undertake a reorganisation, rationalisation and merger involving the companies, for the consideration of their respective boards of directors.
Ekovest also owns about 62% of PLS Plantations Bhd.
Lim’s proposals are intended to streamline, reorganise, rationalise and merge the businesses and assets currently owned and controlled by him 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 will transform the enlarged Ekovest group into a listed public-private-partnership conglomerate in Malaysia, with interests in construction, property development, infrastructure and plantations.
Furthermore, 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. The proposals will also eliminate many of the existing recurrent related party transactions and transfer pricing concerns among these companies, moving forward.
The first proposal involves 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 to be satisfied via the issuance of new ordinary shares in Knusford at an issue price of RM0.60 per new Knusford share.
The second proposal involves the acquisition by Ekovest of four parcels of land spanning approximately 17 acres. These land assets are located in Johor Bahru, and are intended for two 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 to be satisfied via the combination of cash and the issuance of new ordinary shares in Ekovest, at an issue price of RM0.60 per new Ekovest share.
The third proposal is proposed acquisition by Ekovest of at least 51% or more of the issued share capital of Credence Resources Sdn Bhd, which at present 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 to be satisfied via the issuance of new ordinary shares in Ekovest, at an issue price of RM0.60 per new Ekovest share.
The fourth proposal is on the 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 to be satisfied via the issuance of new ordinary shares in IWCity to IWH at an issue price of RM0.80 per new IWCity share.
These corporate proposals are not intended to be conditional or inter-conditional upon each other, and will be implemented separately and independently, if deemed fit by the boards of directors of the respective companies.
Lim said the proposals are aimed at consolidating the assets, resources and capabilities of the respective parties through Ekovest, in order to strengthen the performance, competitiveness and sustainability of the enlarged conglomerate.
Lim says proposals are aimed at consolidating the assets, resources and capabilities of the respective parties through Ekovest.
