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KUALA LUMPUR (Dec 15): Eco World Development Group Bhd (EcoWorld) shares will be suspended from trading today pending a material announcement by Eco World International Bhd (EWI).
In a filing with Bursa Malaysia, EcoWorld said all its structured warrants will be suspended at the same time.
EcoWorld said the announcement is related to the heads of agreement entered into by EWI on Nov 8 with UK construction firm Willmott Dixon to jointly develop 12 sites in Greater London and the south-east of England.
EWI intends to acquire a 70% equity interest in 11 project sites, which collectively have a capacity of 6,700 residential units with a potential gross development value (GDV) of at least £2.5 billion (RM13.86 billion) — over 5.54 times the developer’s market capitalisation of RM2.5 billion.
There is also a framework agreement in place for the development of a further 1,500 units on the 12th site for which the GDV is too early to determine.
Combined, EWI said the agreements could increase EWI’s UK presence fourfold. EWI currently has an ongoing development of 2,500 high-end residential units in Prime Central London under another joint venture with another developer, Ballymore Group.
EcoWorld’s share price fell one sen or 0.67% to close at RM1.48 yesterday, giving it a market capitalisation of RM4.33 billion.
EWI, meanwhile, settled one sen or 1% higher at RM1.01, valuing the group at RM2.42 billion.
This article first appeared in The Edge Financial Daily, on Dec 15, 2017.
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