KUALA LUMPUR (Nov 22): Property developer UEM Sunrise Bhd said today it has not made or received any corporate proposals on a potential merger with rival Eco World Development Group Bhd (EcoWorld).
"With reference to the report in a trade publication dated Nov 20, 2019 on a potential merger with Eco World Development, UEM Sunrise wishes to clarify that the (UEM Sunrise) board of directors has not made nor received any corporate proposal from any party for its consideration.
"Where necessary, UEM Sunrise will release a proper announcement on any material issue on a timely basis as required by the Main Market listing requirements of Bursa Malaysia Securities Bhd," UEM Sunrise said.
UEM Sunrise did not name the trade publication which published the report.
Yesterday, The Malaysian Insight, quoting Mergermarket, reported that UEM Sunrise and EcoWorld are expected to seal a deal by year-end to merge, via a share swap, to form one of Malaysia's largest real estate companies by market value.
The Malaysian Insight said Mergermarket's report had quoted sources familiar with the matter as saying: "Talks are currently at an advanced stage and the deal could be signed before the end of the year."
News on the UEM Sunrise-EcoWorld potential merger had surfaced in recent months.
On Sept 23, theedgemarkets.com, citing UEM Sunrise's Bursa filing, reported that the group said it continuously explores strategic business opportunities that can deliver stakeholder and shareholder returns.
UEM Sunrise was responding to a New Straits Times report published on Friday (Sept 20), where the daily quoted sources as saying UEM Sunrise may acquire smaller rival EcoWorld in a share swap deal.
"We wish to clarify that the (UEM Sunrise) board of directors has not made nor received any corporate proposal as reported in the media, from any party for its consideration," UEM Sunrise said then.
At 3.07pm today, UEM Sunrise's share price fell 1 sen or 1.32% at 75 sen. The stock saw 822,500 shares traded.