EcoWorld Malaysia calls off merger talks with UEM Sunrise

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the decision to cease the merger discussion was because it seeks to pursue its own business plans.

KUALA LUMPUR: Eco World Development Group Malaysia has ceased its merger talks with UEM Sunrise Bhd and it will now focus on its own business plans for FY2021.

In a statement issued on Wednesday EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the decision to cease the merger discussion was because it seeks to pursue its own business plans.

He also cited the current challenging environment with the re-implementation of Movement Control Order

“The cessation of talks on the proposed merger will enable EcoWorld Malaysia to actively pursue other corporate proposals that may be more complementary to our present growth plans and strategies, ” he said.

On Oct 2 last year, UEM Group Bhd invited EcoWorld Malaysia to consider the proposed merger with UEM Sunrise.

Liew said EcoWorld Malaysia was very honoured by UEM Group’s invitation and recognition of its strengths as a potential merger partner.

However, in January this year, after the commencement of discussions with UEM Sunrise, EcoWorld Malaysia decided not to pursue the proposed merger.

Liew said the decision not to continue was after careful evaluation of the proposed merger by its board of directors alongside EcoWorld Malaysia’s own business plans and the current challenging environment with the re-implementation of the MCO.

Liew said the group would now be able to focus on the group’s own business plans for FY2021 which includes a sales target of RM2.87bil for EcoWorld Malaysia which is 25% higher than the actual RM2.30bil sales in FY2020.

“On this note, we have got off to a very strong start with RM500mil sales already achieved in the first two months of FY2021.

“This is a very encouraging result given November and December are typically quiet months for the property sector, ” he said.

Liew said Team EcoWorld’s ability to lock in these sales demonstrates how effectively they have transformed the overall sales process using every tool available, particularly digital and social media channels, to engage with customers and close sales.

“We will continue to work on further digitalising and improving every aspect of the sales process during the current MCO to push towards attainment of the overall target set for the year, ” he added.

Liew also said EcoWorld Malaysia “certainly remain open to the possibility of future collaborations with UEM Sunrise, should another opportunity arise”.