Eco World to begin talks on merger plan


A merger of this magnitude would also eventually create the largest property company in the country that will be controlled by Khazanah.

PETALING JAYA: Eco World Development Group Bhd has decided to commence 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.

“Kindly note that the corporate exercise is still in its preliminary stage and is subject to the company’s assessment on the viability and feasibility of the proposed merger, ” it said.

At the end of October, it was reported that Eco World has asked for more time to consider UEM Group Bhd’s proposed merger proposal.

Should a merger happen between the two companies, Eco World will become a wholly-owned subsidiary of UEM Sunrise and be delisted.

On Oct 5, the UEM Group, which is the unlisted wholly-owned unit of Khazanah Nasional Bhd, had proposed that its subsidiary, UEM Sunrise, and Eco World consider a merger via a share and warrant swap.

A merger of this magnitude would also eventually create the largest property company in the country that will be controlled by Khazanah.

The exercise, which would also need the approval of shareholders, would see Khazanah control the enlarged group with a stake of 43%.

Commenting on this proposal, Kenanga Research said in October that UEM may need to offer more goodies for the merger with Eco World to go through.

The research house was reported as saying that the benefits of the deal were tilted slightly in favour of UEM Sunrise.

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Eco World , UEM Sunrise , Khazanah , merger , Bursa Malaysia ,

   

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