MSWG Newsletter 04 November 2017 (English)
04 November 2017
MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS
EKOVEST BERHAD (“EKOVEST”) / ISKANDAR WATERFRONT CITY BERHAD (“IWC”)
Ekovest had on 27 October 2017 received a proposal letter from Tan Sri Dato’ Lim Kang Hoo (“TSDLKH”), the major shareholder of the company in relation to a reorganisation exercise involving inter alia the acquisition by the company of all the ordinary shares in Iskandar Waterfront City Berhad (“IWC Shares”) held by the existing shareholders of IWC, excluding IWC Shares held by Iskandar Waterfront Holdings Sdn Bhd (who was proposed by TSDLKH not to accept the offer by the company for the acquisition of its shares in IWC), representing approximately 62% of the issued and paid-up share capital of IWC.
[Source: Ekovest’s announcement on Bursa Malaysia’s website on 31 October 2017]
MSWG’S COMMENTS:
The proposed takeover of IWC by Ekovest is an exercise of consolidation and rationalisation under Ekovest Bhd as an anchor company for Tan Sri Lim Kang Hoo. The earlier proposed merger exercise between IWC and Iskandar Waterfront Holdings Sdn. Bhd. (“IWH”) could no longer be viable in sense that both IWC and IWH need cash to ensure the proposed merger happen.