PETALING JAYA: Tan Sri Lim Kang Hoo, the major shareholder of Ekovest Bhd, Knusford Bhd, Iskandar Waterfront Holdings Sdn Bhd (IWH) and Iskandar Waterfront City Bhd (IWCity), has proposed to undertake a reorganisation, rationalisation and merger proposal involving the companies.
In separate filings with Bursa Malaysia yesterday, Lim voiced his proposals to streamline, reorganise and merge the businesses and assets currently owned and controlled by himself and persons acting in concert – through the various public listed and non-listed companies – as well as to consolidate his direct shareholdings in the various companies.
Lim underlined his belief that the proposals will enable the enlarged Ekovest group to become one of the listed public-private-partnership conglomerates in Malaysia involved in construction, property development, infrastructure and plantation.
The first proposal is the suggested merger of the construction businesses of Ekovest and Knusford, whereby Knusford would acquire the entire issued share capital of Ekovest Construction Sdn Bhd – a wholly-owned subsidiary of Ekovest.
“The purchase consideration payable by Knusford to Ekovest is proposed to be satisfied via the issuance of new ordinary shares in Knusford at a proposed issue price of 60 sen per new Knusford shares,” the statement said.
The second proposal involves the acquisition by Ekovest of three parcels of lands measuring 17 acres in Johor Baru, which are intended for two transit-oriented developments along the alignment for the Johor Baru–Singapore Rapid Transit System link.
The purchase consideration payable by Ekovest to the vendors of the land plots is proposed to be satisfied via the combination of cash and the issuance of new ordinary shares in Ekovest at a proposed issue price of 60 sen per new Ekovest share.
The third proposal is the acquisition by Ekovest of at least 51% of the issued share capital of Credence Resources Sdn Bhd, which presently holds 63.13% equity interest in IWH, which in turn holds 34.3% equity interest in IWCity.
The purchase consideration payable by Ekovest to the vendors of Credence is proposed to be satisfied via the issuance of new ordinary shares in Ekovest at an issue price of 60 sen per new Ekovest share.
The final proposal is the proposed merger of the properties and assets of IWH and IWCity under a single entity through the purchase by IWCity of the entire issued share capital of all the existing direct subsidiaries of IWH.
The purchase consideration payable by IWCity to IWH is via the issuance of new ordinary shares in IWCity to IWH at an issue price of 80 sen per new IWCity share.
In addition, Lim said the respective companies highlighted that the proposals are intended to mitigate any potential conflict of interests and speculations relating to his alignment of interest as a major shareholder of the companies.
“It will also eliminate many of the existing recurrent related-party transactions and transfer pricing concerns among the companies, moving forward,” he said.
Lim said these proposals are not to be conditional or inter-conditional upon each other, and will be implemented separately and independently, if given the green light by the board of the respective companies.
He said given the similar core businesses of the companies, the proposals are meant to consolidate the assets, resources and capabilities of the respective parties through Ekovest – which also owns 62% of PLS Plantation Bhd – to strengthen the performance, competitiveness and sustainability of the enlarged conglomerate.