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PETALING JAYA: The Umno Youth of the Federal Territories has urged the government of Perikatan Nasional to stop the merger of UEM Sunrise and real estate developer Eco World Development Group Bhd.
Its boss, Mohamed Nizham Abdullah Hamdi, asked UEM Group why it merged its subsidiary with EcoWorld.
While he praised EMU for coming out openly, he said he would like to know how many companies he had spoken to and who these companies were.
“We want to know the justification of EMU for wanting to merge with EcoWorld. EMU has huge land banks and most of these land banks are concentrated in the Bumiputera areas. Will these interests continue to be protected? “he asked today in a statement.
Nizham also questioned how the merger would benefit Khazanah and the Finance Ministry, claiming that UEM Sunrise could lose more than EcoWorld on the merger.
“In our opinion, this merger is serving the same goal, as we assumed last year, by bailing out EcoWorld. They are in a bad situation with so many projects that are not working well. Now, it seems they are using the government to bail them out.
“We urge the government to stop this. If it is necessary for UEM Sunrise to merge, do an open exercise and explore opportunities with more companies to bring more benefits to the country ”.
Today it was reported that UEM Sunrise, the owned arm of Khazanah Nasional, had received a proposal from UEM Group for a merger with EcoWorld.
The announcement on Bursa Malaysia indicated that the UEM Sunrise board of directors received the letter from UEM Group on October 2, proposing that the two companies merge through a share and warrant exchange.
In the letter, UEM Group said it would wait for a decision on the proposal before October 30 for discussions on the merger to begin.
