PETALING JAYA: Eco World Development Group Bhd executive chairman Tan Sri Liew Kee Sin has acquired 276.98 million shares from his son, Liew Tian Xiong, which represent a 9.42% stake in the company.
According to Bursa Malaysia filings yesterday, Kee Sin acquired the shares from Tian Xiong in an off-market transaction for the purpose of family estate planning.
Following the acquisition of the shares, Tian Xiong, who is an executive director of Eco World, saw his direct stake being reduced to 225.78 million shares or 7.66%.
Meanwhile, Kee Sin’s total stake has increased to 446.98 million shares or 15.18%.
This comprises the 9.42% stake acquired from his son and his indirect stake of 5.77% or 170 million shares. The shares were traded in an off-market deal at 46.6 sen or 20.9 sen below Monday’s close of 67.5 sen. Tian Xiong is the eldest son of Kee Sin, who made his first corporate appearance in the company back in 2013.
Today, he also serves as the divisional general manager of Eco Ardence, a joint venture between Eco World and Cascara Sdn Bhd.
The 215.7ha township of Eco Ardence is located just before Setia Alam in Shah Alam, with a gross development value (GDV) of RM8.58bil. Eco World expects to hit its sales target of RM6bil over the 2019 and 2020 financial years following a pick-up in sales this year.
The sales target was set with expectations that there would be a slight lull in the market until the Home Ownership Campaign was launched. Better sales have lifted Eco World’s revenue for its nine-month period ended July 31,2019 to RM1.55bil from RM1.52bil in the previous corresponding period.
Its net profit jumped strongly to RM122mil from RM80.7mil. Eco World currently has a land bank of 4,467 acres with a potential GDV of RM69.2bil. In Budget 2020, the government announced that it would be reducing the foreign threshold price from RM1mil to RM600,000 for high-rise units in urban centres.
The real property gains tax has also been re-pegged from Jan 1,2000 to Jan 1,2013, a measure which will reduce the burden of the property seller. Meanwhile, the government is also allocating RM3bil in a RM10bil rent-to-own scheme for properties up to RM500,000 for first-time buyers in the low-income group. Under this scheme, the applicant will rent the property for up to five years. The tenant will have the option of purchasing the house based on the price fixed at the time the tenancy agreement is signed after year one.