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The Tee brothers and E&O

KUALA LUMPUR (April 10): A report by The Edge Malaysia asked the question – why did Kerjaya Prospek Group Bhd co-founders Datuk Tee Eng Ho and his brother Tee Eng Seng buy into E&O?

Their “recent move” to “mop up additional shares in Eastern & Oriental Bhd (E&O), hitting the 33% threshold for a mandatory general offer (MGO), has left many investors wondering what they see in E&O that others do not”, wrote the weekly.

“Datuk Tee (Eng Ho) is a long-term value creator. This is evident from his entry into once-obscure Fututech Bhd in 2011 when he and Eng Seng emerged as major shareholders via a jointly-owned company, Egovision Sdn Bhd. Much of the company’s growth came after Datuk Tee injected his construction business via Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd into Fututech in 2015 for RM458 million,” a person “familiar with the company” told The Edge.

The weekly also wrote that “people close to Eng Ho” revealed that he “sees E&O’s abundant quality land bank in Penang and Kuala Lumpur, and the fact that it remains a very strong brand name, with strong customer loyalty among a select demographic, as hidden gems”.

The company also operates the Eastern & Oriental Hotel in Penang and the E&O Residences Kuala Lumpur.

Meanwhile “industry observers” are of the view that Kerjaya Prospek benefit “from future projects by E&O, noting that the latter is already one of the construction firm’s major clients, in addition to Eco World Development Group Bhd and S P Setia Bhd”.

The business publication also reported that “E&O’s pipeline of projects includes” that with Mitsui Fudosan Group, “where the company is jointly developing 3.94 acres of freehold land in Damansara Heights, Kuala Lumpur”.

The development will have 54 units of luxury low-rise condo-villas with a gross development value (GDV) of RM348 million and “is slated for launch in the second half of 2021”.

Read the full report in this week’s The Edge Malaysia

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