IWCity active, rises 4.35% after recent beating on aborted Bandar Malaysia deal

KUALA LUMPUR (May 11): Iskandar Waterfront City Bhd (IWC) shares recovered 4.35% in active trade this morning after it had nosedived over last few trading sessions from the sustained negative vibes from the collapsed Bandar Malaysia deal.

At 9.20am, IWC rose 7 sen to RM1.68 with 32.18 million shares traded.

The recent heavy selldown on the company, which is controlled by Tan Sri Lim Kang Hoo, was much expected but no thanks to the termination of the sale of 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC Sdn Bhd, in which the property tycoon also holds an equity interest.

IWH CREC is a 60:40 joint venture between Lim’s flagship Iskandar Waterfront Holdings Bhd (IWH) and state-owned China Railway Engineering Corp (M) Sdn Bhd (CREC). Lim holds a 63% stake in IWH, while Kumpulan Prasarana Rakyat Johor Sdn Bhd owns the remaining 37%.

IWH’s equity interest in Bandar Malaysia was seen as the crown jewel of the proposed merger exercise between the company and its sister company IWC. IWC shares were well sought-after as it was seen as a proxy to ride on the growth potential of Bandar Malaysia. — theedgemarkets.com

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