KUALA LUMPUR (April 24): Ekovest Bhd managing director Lim Keng Cheng (pictured) today assured shareholders that he remains active as the group's MD, despite having ceased as a substantial shareholder of the group.
"Please be assured that I am actively working as Ekovest Bhd and DUKE MD per my mandate given by both companies' shareholders. This morning I have just completed a site walk with Datuk Bandar DBKL at Sungai Bunus as part of our ongoing CSR efforts under the River of Life project," Keng Cheng, who is the nephew of Ekovest's executive chairman Tan Sri Lim Kang Hoo, said in a statement.
On Friday, it was reported that Keng Cheng's investment vehicle, Lim Seong Hai Sdn Bhd (LSH), had trimmed its stake and ceased to be a substantial shareholder in the construction group after selling 20.09 million shares on the open market. This left it with 108.36 million shares or a 4.02% stake in Ekovest. Prior to that, LSH held 134.61 million or a 4.99% stake in the group, as at Sept 30, 2020.
The disposal resulted in Keng Cheng, together with his siblings Datuk Lim Keng Guan, Lim Pak Lian and Lim Keng Hun, ceasing to be substantial shareholders in Ekovest.
In his statement today, Keng Cheng explained that he only has a 25% stake in the investment company LSH, with the rest being shared equally by his siblings.
He also said the recent divestments made by LSH were due to two reasons, the first being emerging opportunities to invest in upcoming developments that include affordable housing schemes, in support of the government's initiatives in providing affordable houses to Malaysians.
The second reason was related to LSH being a licensed moneylender and had provided facilities to several friendly companies as they could not secure banking facilities during these trying times. "In light of recent events where the 3rd/4th Covid-19 wave appears potentially imminent, LSH is taking proactive measures to ensure that enough cash reserves are readily available to mitigate any adverse situations," Keng Cheng added.
Ekovest shares last closed at 47 sen, for a market capitalisation of RM1.25 billion.
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