Ekovest in free fall after Bandar Malaysia deal aborted

KUALA LUMPUR (May 4): Ekovest Bhd, a construction firm linked to Iskandar Waterfront Holdings Sdn Bhd (IWH) via Tan Sri Lim Kang Hoo, saw its share price open 42 sen or 29.37% lower at RM1.01 this morning after the much-touted Bandar Malaysia deal was aborted.

As at 10.51am, the counter pared some losses to trade at RM1.19, down 24 sen or 16.78%, with 146 million shares changing hands.

Yesterday, Ministry of Finance-owned TRX City Sdn Bhd announced that the share sale agreement it had inked with IWH CREC Sdn Bhd in December 2015 had lapsed “despite repeated extensions being granted, making the agreement null and void with immediate effect”.

Following this, TRX City had said it is immediately inviting expressions of interest for the role of master developer of Bandar Malaysia, with full ownership being preserved by the Ministry of Finance.

IWH CREC is a 60:40 joint venture (JV) between IWH and China Railway Engineering Corp (M) Sdn Bhd (CREC).

Hours later, IWH CREC disputed the announcement, saying the factual matrix does not “fully and accurately” reflect the circumstances and conduct of the parties in this matter.

“IWH CREC takes this matter very seriously and is at present reviewing the content of the termination notice and press release with its advisers and legal counsel,” the JV firm said in their statement. — theedgemarkets.com

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