PETALING JAYA (Jan 13): After more than three months of discussions, Eco World Development Group Bhd has decided not to pursue the proposed merger further with UEM Sunrise Bhd, said the company chairman Tan Sri Liew Kee Sin (pictured).
In a press statement issued by EcoWorld today, the decision was made after the commencement of discussion with UEM Sunrise Bhd in January this year.
“After careful evaluation of the Proposed Merger by our Board of Directors alongside EcoWorld Malaysia’s own business plans and the current challenging environment with the re-implementation of Movement Control Order, we have decided not to pursue the Proposed Merger further with UEMS,” Liew said in the press statement.
He noted that the cessation of talks on the proposed merger will enable EcoWorld Malaysia to actively pursue other corporate proposals that may be more complementary to the company’s present growth plans and strategies.
“It will also enable us to focus on the group’s own business plans for FY2021 which includes a sales target of RM2.875 billion for EcoWorld Malaysia that is 25% higher than the actual RM2.3 billion sales recorded in FY2020,” Liew shared.
EcoWorld Malaysia has a strong start off of the year with RM500 million sales achieved in the first two months of FY2021 despites November and December being typically quiet months for the property sector.
“Team EcoWorld’s ability to lock in these sales demonstrates how effectively they have transformed the overall sales process using every tool available, particularly digital and social media channels, to engage with customers and close sales.
We will continue to work on further digitalising and improving every aspect of the sales process during the current MCO to push towards attainment of the overall target set for the year.
On Oct 5 last year, UEM Group Bhd announced its proposal to merge its property development arm UEM Sunrise with EcoWorld, in a deal that will entail an exchange of securities.
UEM Sunrise is the property arm of sovereign wealth fund Khazanah Nasional Bhd. It is the master developer behind Mont Kiara and Dutamas developments in Kuala Lumpur, which are among its various projects in the Greater Kuala Lumpur area, Iskandar Puteri in Johor, Singapore and Australia.
Meanwhile, Eco World is the developer of the Bukit Bintang City Centre project in Kuala Lumpur, among its developments in the Klang Valley, Iskandar Malaysia, Penang, Singapore and UK.
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