Ekovest Bhd Disposes Four Parcels of Jalan Pahang Land for RM9.82 Million
Infrastructure and construction group Ekovest Bhd (KL) announced the disposal of four parcels of land along Jalan Pahang in Kuala Lumpur. The transaction, amounting to RM9.82 million, is with Airman Sdn Bhd, a wholly-owned subsidiary of Lim Seong Hai Holdings Sdn Bhd (LSHHSB).
Details of the Disposal
The four parcels of land measure a total of 2,286 square meters. This transaction is considered a related party transaction as Tan Sri Lim Keng Cheng, a non-independent and non-executive director of Ekovest, holds a 25% stake in LSHHSB. The other shareholders of Airman, each with a 25% stake, are Datuk Lim Keng Guan, Lim Pak Lian, and Lim Keng Hun.
Ekovest expects to gain RM3.51 million from the disposal, with the proceeds earmarked for general working capital purposes.
Previous Land Divestment
This transaction follows an earlier divestment on February 22, where Ekovest sold 13 parcels of land totaling 12,400 square meters in the same area to LSHHSB for RM66.8 million.
The land along Jalan Pahang is strategically located on the left side of the road when traveling from Kuala Lumpur city center and Bulatan Pahang towards the Gombak and Setapak localities.
EkoQuay Development Project
Initially, Ekovest had planned to integrate these land parcels into a mixed development project known as EkoQuay. However, the development order for this project expired in February 2021, leading to the decision to divest the land.
Market Reaction
Following the announcement, Ekovest shares fell two sen, or 4.3%, to 44.5 sen on Monday, bringing the group’s valuation to RM1.32 billion.
Implications and Future Prospects
The disposal of these land parcels allows Ekovest to bolster its working capital, providing liquidity for future projects and operations. This strategic move also reflects the company’s adaptive approach in managing its assets and investments.
While the expired development order for EkoQuay signifies a shift in plans, the proceeds from these transactions can enable Ekovest to explore new opportunities and ventures. The ongoing divestment activities indicate a possible realignment of the company’s portfolio towards more profitable or strategic investments.
Conclusion
Ekovest Bhd’s sale of four parcels of land along Jalan Pahang for RM9.82 million is a significant move in optimizing its asset portfolio. With a gain of RM3.51 million directed towards working capital, the company is positioned to enhance its financial flexibility. This transaction, along with previous divestments, underscores Ekovest’s strategic asset management approach in a dynamic market environment.
