Ekovest Bhd has extended by another three months its proposed acquisition of four parcels of land located along the Johor Bahru–Singapore Rapid Transit System (RTS) Link, with the revised deadline now set for April 27, 2026.
In a filing with Bursa Malaysia, the company said it had mutually agreed with the vendors to extend the negotiation period from Jan 28 to April 27, 2026, to allow additional time for review and discussions. The transaction, first announced in October 2023 and originally targeted for completion in April 2024, has now been extended five times.
Details of the proposed acquisition
Ekovest entered into binding term sheet agreements on Oct 27, 2023, for a proposed RM310 million acquisition covering a total of 15.82 acres, intended for potential transit-oriented development in anticipation of the RTS Link.
The proposed acquisition comprises two separate transactions:
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First parcel: Two freehold land parcels totalling 6.18 acres, currently housing Danga City Mall and an exhibition building, to be acquired from Danga City Mall Sdn Bhd (DCMSB) for RM210 million. The vendors are Mohamad Nor Hamid and Lee Hun Yeung.
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Second parcel: Two leasehold land parcels totalling 9.64 acres to be acquired from Khazanah Melati Sdn Bhd for RM100 million. The vendors are Cheong Meow Yen and Desa Sinarmas Sdn Bhd.
Related-party elements
Both DCMSB and Khazanah Melati are related to Ekovest’s substantial shareholder, Tan Sri Lim Kang Hoo. The relationship arises from Lim’s ownership of 86.071 million redeemable preference shares in DCMSB, as well as a loan he extended to Khazanah Melati.
Lim holds a 20.059% direct interest and an additional 11.225% indirect interest in Ekovest.
Transaction structure
Under the term sheet agreements, Ekovest has the option to acquire the land either directly or through the purchase of all shares in DCMSB and Khazanah Melati.
The proposed consideration is expected to be settled via the issuance of new Ekovest shares at an issue price of 60 sen per share.
Ekovest shares have declined approximately 55% since the announcement of the deal and last closed down 1.82% at 27 sen, giving the group a market capitalisation of RM800.7 million.
Strategic rationale
In its original October 2023 filing, Ekovest said the acquisition was intended to strengthen its property development and investment portfolio by capitalising on demand arising from improved connectivity following the completion of the RTS Link between Johor Bahru and Singapore.
Related development
The extension comes shortly after Ekovest allowed its proposed RM1.15 billion acquisition of Credence Resources Bhd from Lim to lapse. The company disclosed that the heads of agreement (HOA) for the transaction expired on Jan 26, 2026, after being extended nine times since it was first announced.
