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Lim Kang Hoo-linked shares slip as Bandar Malaysia deal lapses

KUALA LUMPUR (July 15): Share prices of Iskandar Waterfront City Bhd (IWCity) and Ekovest Bhd, both of which are linked to businessman Tan Sri Lim Kang Hoo (pictured), fell in Bursa Malaysia morning trade today after IWCity’s major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH) said yesterday the share sale agreement for the planned acquisition of a 60% stake in Bandar Malaysia Sdn Bhd by IWH’s joint venture (JV) had lapsed on May 6, 2021.

The planned acquisition of the 60% stake in Bandar Malaysia was intended to facilitate the proposed Bandar Malaysia property development project within the site of the Sungai Besi Airport here.

At 10:21am today, property developer IWCity’s share price slid 0.5 sen or 1.33% to 37 sen after falling to its lowest so far today at 36.5 sen. At 37 sen, IWCity has a market capitalisation of about RM340.82 million.

Builder and property developer Ekovest’s share price slipped one sen or 2.53% to 38.5 sen after falling to its lowest so far today at 38 sen. At 38.5 sen, Ekovest has a market value of about RM1.04 billion.

According to a joint statement yesterday (July 14) by IWH, TRX City Sdn Bhd and Bandar Malaysia, the restated and amended share sale agreement involving Bandar Malaysia, TRX and WH CREC Sdn Bhd was executed on Dec 17, 2019.

The statement said the agreement had lapsed on May 6, 2021 because the conditions precedent in the agreement had not been fulfilled by the respective parties within the condition precedent period.

IWH CREC is the JV entity formed by IWH and China Railway Engineering Corp (M) Sdn Bhd while Bandar Malaysia is wholly owned by TRX, a 100%-owned subsidiary of Malaysia’s Ministry of Finance, according to the statement.

Lim is a common major shareholder in IWCity and Ekovest, according to these companies’ latest annual reports.

IWCity said in its annual report that IWH owns a direct 34.29% stake in IWCity as at April 30, 2021.

According to the report, Lim's combined direct and indirect IWCity stake stood at 34.89%, comprising a 0.6% direct portion and 34.29% indirect stake.

The report said Lim’s indirect 34.29% stake in IWCity is held via his stakes in Credence Resources Sdn Bhd and IWH.

In Ekovest, Lim owns a combined direct and indirect stake of 30.8% as at Sept 30, 2020.

According to Ekovest’s annual report, Lim’s 30.8% stake comprises direct and indirect stakes of 19.75% and 11.05% respectively.

The report said Lim’s indirect 11.05% stake is held via Ekovest Holdings Sdn Bhd.

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