Tycoon Tan Sri Lim Kang Hoo, a significant shareholder in various companies, including Ekovest Bhd, Knusford Bhd, Iskandar Waterfront Holdings Sdn Bhd (IWH), and Iskandar Waterfront City Bhd (IWCity), has put forward a proposal to merge and streamline these businesses under an enlarged Ekovest Bhd. This move aims to rationalize his business segments, consolidate his direct shareholdings, and mitigate potential conflicts of interest.
Lim, a major shareholder in Ekovest Bhd, has suggested a reorganization, rationalization, and merger involving these companies. The boards of directors will consider these proposals. The primary objective is to streamline, reorganize, and merge the assets and businesses currently controlled by Lim and associated parties across various publicly listed and non-listed companies. Additionally, it aims to consolidate Lim’s direct shareholdings in these entities.
These proposals intend to eliminate potential conflicts of interest and speculation concerning Lim’s alignment as a major shareholder of these companies. They will also address existing recurrent related-party transactions and transfer pricing concerns among these businesses.
The proposed actions include:
- Merger of Construction Businesses: The merger of the construction businesses of Ekovest and Knusford, with Knusford acquiring Ekovest Construction Sdn Bhd, a wholly-owned subsidiary of Ekovest.
- Acquisition of Land in Johor Bahru: Ekovest’s proposed acquisition of three parcels of land in Johor Bahru, intended for potential transit-oriented developments along the Johor Bahru–Singapore Rapid Transit System Link.
- Acquisition of Credence Resources: Ekovest’s acquisition of at least 51% of the issued share capital of Credence Resources Sdn Bhd, which holds a significant equity interest in IWH and IWCity.
- Merger of Properties and Assets: The merger of the properties and assets of IWH and IWCity under a single entity through the acquisition by IWCity of the entire issued share capital of all existing direct subsidiaries of IWH.
These proposals aim to consolidate the assets, resources, and capabilities of these companies through Ekovest, enhancing the overall performance, competitiveness, and sustainability of the enlarged conglomerate. The proposals may be implemented separately and independently based on the boards of directors’ decisions for each respective company involved.
The market reactions to these proposals resulted in various stock price movements for the mentioned companies. Ekovest’s shares closed slightly lower, Knusford’s shares increased, IWCity’s shares closed lower, and PLS Plantation’s shares remained unchanged.