Trading in IWCity shares suspended until Friday

KUALA LUMPUR (May 4): Trading in the shares of Iskandar Waterfront City Bhd (IWCity), which succumbed to some selling pressure in the afternoon yesterday, has been suspended this morning until Friday, IWCity told Bursa Malaysia today.

The suspension came on the heels of the announcement of the termination of the 60% stake sale in Bandar Malaysia project to the joint venture IWH CREC Sdn Bhd. The stock was last traded at RM3.08, compared with 91 sen in early February. It fell over 4% yesterday.

The termination of the deal, which was then perceived as the milestone for cash-strapped 1Malaysia Development Bhd to raise fresh fund to meet debt obligations, has caught many off guard.

The news will not augur well for IWCity, which saw its share price tripled since February following the proposed merger with sister company Iskandar Waterfront Holdings Sdn Bhd (IWH) that holds a 60% stake in IWH CREC through a share swap exercise.

IWH's equity interest in Bandar Malaysia project is considered as the crown jewel of the merger exercise, in which major shareholder Tan Sri Lim Kang Hoo and the Johor Sultan will also inject landbank into the merged entity.

IWCity is expected to announce additional details on the merger exercise tomorrow.

Without the Bandar Malaysia project, which owns a massive landbank in Kuala Lumpur city centre, in the picture, the merger exercise between IWCity and IWH may not be as attractive to the investing fraternity, said some fund managers.

The following is a replication of IWCity's Bursa announcement.

On behalf of the Board of Directors of IWC, AmInvestment Bank Berhad, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad and RHB Investment Bank Berhad wish to announce that Bursa Malaysia Securities Berhad (“Bursa Securities”) has approved the Company’s request for suspension of trading of the Company’s shares with effect from 9 a.m, Thursday, 4 May 2017 to 5.00 p.m., Friday, 5 May 2017.

The request for suspension is made under subparagraph 3.1(a)(ii) of Practice Note 2 on Requests for Suspension of the Main Market Listing Requirements of Bursa Securities (“Listing Requirements”) pursuant to the receipt of a letter from Iskandar Waterfront Holdings Sdn. Bhd., who is the major shareholder of IWC, informing the Company of its intention to undertake a restructuring exercise, which involves the Company.

This announcement is dated 4 May 2017.

— theedgemarkets.com

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