KUALA LUMPUR (Oct 5): UEM Group Bhd today proposed merger of its subsidiary UEM Sunrise Bhd and Eco World Development Group Bhd.
In a filing with Bursa Malaysia today, UEM Group said the proposed merger will be carried out via an exchange of shares and warrants.
“The holders of shares and warrants in ECO World will exchange their shares and warrants in Eco World respectively for new shares and warrants of UEM Sunrise, thereby becoming the holders of shares and warrants in the enlarged UEM Sunrise,” UEM Group said.
Upon completion of the proposed merger, Eco World will be delisted and become a wholly-owned subsidiary of UEM Sunrise. It is expected that the merger company will have a total market capitalization of RM2.89 billion.
UEM Sunrise is renowned for its award-winning and up-market high-rise residential and commercial developments, spanning the central and southern regions of Peninsular Malaysia and Australia. It has a remaining landbank of over 12,000 acres, a significant portion of which is in Iskandar Puteri, one of the five flagship zones of Iskandar Malaysia, of which it is also the master developer.
Meanwhile, Eco World is one of Malaysia's fastest growing developers and has launched 25,357 properties with cumulative sales of RM20.5 billion since its emergence in 2013. Eco World indirectly, via its wholly-owned subsidiary, holds a 27% equity stake in public listed Eco World International Bhd (EWI), which has expanded rapidly through organic growth and joint venture partnerships in the UK and Australia. To date, EWI has secured cumulative sales of RMI3.4 billion in the UK and Australia.
UEM Group also shared that there may be a need to reorganise and streamline the enlarged UEM Sunrise group's operations upon completion of the proposed merger.
“However, taking into account the adverse impact of CoVID-I9 to the job market, we hope there will not be any immediate redundancy or dismissal of staff of the parties as a direct consequence of the proposed merger. A new Employees' Share Option Scheme (ESOS) for the employees of the enlarged UEM Sunrise group is also proposed to be implemented under the proposed merger,” it noted.
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