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KUALA LUMPUR (September 17): Two stocks linked to tycoon Tan Sri Lim Kang Hoo were the most traded counters in Bursa Malaysia this morning.
Shares of Ekovest Bhd rose as much as 11.21% or 6.5 sen to an intraday high of 64.5 sen, before cutting its gains to 60 sen at noon. The accountant was the most active stock in Bursa Malaysia, with some 243.51 million shares changing hands.
Iskandar Waterfront City Bhd (IWCity) also rose as much as 11.57% or seven sen to hit an intraday high of 67.5 sen, before cutting initial gains to 63 sen, still above 2.5 sen or 4, 13% from the close of Tuesday. 37.05 million shares were traded, exceeding its 200-day average volume of 16.7 million shares.
Commercial interest in the shares was fueled by the latest development of the Bandar Malaysia project.
On Tuesday, IWCity’s joint venture entity (JV), IWH-CREC Sdn Bhd, settled the advance payment of a 60% stake in Bandar Malaysia.
The initial deposit amounted to RM1.24 billion, which comprised a deposit of RM741 million plus an additional RM500 million.
IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).
In an interview with The Edge on Tuesday, Lim, the largest shareholder in Ekovest and IWH with stakes of 32.4% and 63%, respectively, said that Ekovest will acquire a 40% stake in IWH-CREC in a bid to share the fortunes. of RM140 billion. Bandar Malaysia project, which it expects to start early next year.
“I am president of both companies, so I have to be fair to both companies. For Ekovest to participate, it will have a direct link to jointly develop any infrastructure or development in Bandar Malaysia. This will be very good for Ekovest’s future order book.
“With the estimated gross development value of RM140 billion for Bandar Malaysia, Ekovest should have a stake with IWH along with CREC,” Lim said.
According to him, the price of a 40% stake in IWH-CREC, which Ekovest is currently in talks to acquire, is estimated at 1.5 billion ringgit.
If the negotiations are successful, IWH-CREC will have three shareholders, namely Ekovest (40%), IWH (20%) and CREC (40%).
Meanwhile, Reuters reported that IWH plans to list in the first half of 2021 to raise at least RM5 billion after getting the go-ahead to start work on the Bandar Malaysia project.
The report quoted Lim as saying that RM3.7 billion of the proceeds will be used to pay off the debt incurred from the acquisition of 60% of the Bandar Malaysia project together with CREC from the Ministry of Finance.
IWH has appointed CIMB to lead its listing, while ICBC, Bank of China and CITIC are bookmakers.
Read also:
The 40% stake in IWH-CREC may cost Ekovest RM1.5b
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