Eco World seeks three-month extension to complete corporate exercise

KUALA LUMPUR (April 22): Eco World Development Group Bhd (Eco World) is seeking a three-month extension to complete the last part of its major corporate exercise.

In a filing with Bursa Malaysia today, Eco World said it has submitted an application for an extension of another three months up to Aug 5, 2015 to complete the corporate exercise.

Originally, the company has until May 6, 2015 to complete the whole corporate exercise.

“The proposed extension date to complete the corporate exercises is in line with the last date for Eco World to comply with the public spread requirement by Aug 6, 2015, as approved by Bursa Securities via its letter dated Jan 7, 2015,” the filing read.

“Nonetheless, it is Eco World’s intention to complete the placement soonest possible prior to the proposed extension date,” it added.

Eco World said it must complete the implementation of the corporate exercises within six months from the date the listing application relating to the corporate exercises is approved by Bursa Malaysia on Nov 7, 2014.

The company said that throughout the course of the past five and a half months from the date of Bursa Securities’ greenlight for its corporate exercise, it has completed all the components, save for the placement of new Eco World shares.

Eco World had proposed a share subscription by its then major shareholder Eco World Sdn Bhd to raise RM1.37 billion, a rights issue with free warrants to raise RM788 million, and a private placement of new shares equivalent to 20% of its enlarged share base.

These series of fundraising moves were proposed to fund several major property acquisitions.

In tandem with this major corporate exercise, Eco World had set a property sales target of RM5 billion for the next two years, with RM2 billion for financial year 2014 (FY2014) and RM3 billion for FY2015.

Eco World shares closed two sen or 1.09% higher at RM1.85, with a market capitalisation of RM3.61 billion.