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KUALA LUMPUR, October 9 – UEM Sunrise Berhad CEO and CEO Anwar Syahrin Abdul Ajib resigned from the government-linked real estate company, just days after his parent company announced a proposed merger with Eco World Group Berhad .
UEM Sunrise, the flagship property arm of UEM Group Berhad and sovereign wealth fund Khazanah Nasional Berhad, said in a presentation to Bursa Malaysia today that Anwar submitted the resignation notice today with immediate effect.
The firm added that a resignation announcement will be made “in due course.”
“In the meantime, a transition plan will be implemented for a smooth handover of its responsibilities to ensure the continued management of UEM Sunrise’s business and operations,” the statement said.
The proposed merger between UEM Sunrise and Eco World is now the epicenter of another controversy involving state-linked companies under the Perikatan Nasional rule, as opponents interpret it as yet another attempt to rescue an embattled company.
Critics of the Perikatan Nasional government have taken to social media to accuse UEM Group, the parent company of UEM Sunrise, of cronyism, claiming that the deal favored the wealthy owners of Eco World.
In a filing with Bursa Malaysia, EcoWorld said it had received a letter from UEM Group describing the proposed merger on Monday.
UEM Group issued a statement announcing the proposal the same day.
The firm said the consolidation exercise would leverage the strengths and capabilities of UEM Sunrise and EcoWorld, as moderate macroeconomic conditions worsened by the outbreak are forcing real estate agents to pool resources to survive.
But critics found little merit in the merger. Among the reasons given are Eco World’s heavy debt.
UEM Group said it expected a decision on the proposal before October 30.
Under the proposal, Khazanah will remain the largest shareholder when the merger is completed, followed by Eco World, whose main shareholders are members of Tan Sri Lee Kiew Sin’s family and close associates.
New times of the Strait reported that Lee is close to Khazanah CEO Datuk Shahril Ridza Ridzuan, who has been pushing for the merger.
It was proposed that the president of the enlarged company be appointed from among the UEM Sunrise board members.
Khazanah declined to comment.
