EcoWorld to clarify RM1.18b Ijok land buy after S'gor warns of legal action

KUALA LUMPUR (Sept 25): Eco World Development Bhd (EcoWorld) will meet the Selangor state government to clarify its proposed land buy for a RM15 billion township in Ijok.

In a statement to the exchange today, EcoWorld said Menteri Besar Inc (MBI), which raised its concerns on the matter, could be referring to a separate portion from the sites, which Eco World was buying.

EcoWorld said it "believes that the parcels referred to by the MBI may be a separate parcel north of the lands and we will be arranging to meet with MBI to clarify this and also to address any concerns they may have, in relation to the proposed acquisitions."

"As part of the conditions precedent, the vendors are required to procure the approval of the state authority of Selangor for the transfer of the lands to PPSB (Paragon Pinnacle Sdn Bhd), and also to ensure that any legal disputes with the state authority of Selangor are satisfactorily resolved, before the SPAs become unconditional," Eco World said.

EcoWorld wholly owns PPSB.

On Wednesday (Sept 23), MBI said in a statement that EcoWorld's land buy involved a portion, which the state government intends to acquire.

MBI said the land portion was involved in legal proceedings. As such, MBI said it might apply for an "injunction due to action made by the relevant vendors."

At 12:30pm today, EcoWorld shares fell three sen or 2% to settle at RM1.47, for a market capitalisation of RM3.48 billion. The stock saw 521,100 shares done.