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PETALING JAYA: Eco World Development Group Bhd
has decided to start the discussion and explore the feasibility of the proposed merger with UEM Sunrise Bhd.
Eco World said in a filing with Bursa Malaysia that its board had also deliberated on the proposed merger.
“Please note that the corporate exercise is still in its preliminary stage and is subject to the company’s assessment of the feasibility and feasibility of the proposed merger,” he said.
At the end of October, it was reported that Eco World had requested more time to consider the merger proposal proposed by UEM Group Bhd.
If a merger occurs between the two companies, Eco World will become a wholly owned subsidiary of UEM Sunrise and will be delisted.
On October 5, UEM Group, which is the unlisted wholly owned unit of Khazanah Nasional Bhd, proposed that its subsidiary, UEM Sunrise and Eco World, consider a merger through an exchange of shares and guarantees.
A merger of this magnitude would also eventually create the country’s largest real estate company to be controlled by Khazanah.
The exercise, which would also need shareholder approval, would see Khazanah control the expanded group with a 43% stake.
Commenting on this proposal, Kenanga Research said in October that UEM may need to offer more benefits for the merger with Eco World to take place.
The research house was reported to have said that the benefits of the deal were slightly skewed in favor of UEM Sunrise.
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