Ekovest cancels stake buy in IWH-CREC venture as Bandar Malaysia deal lapses

by PRIYA VASU / pic credit: ekovest.com.my

EKOVEST Bhd will not proceed with head of agreement struck with Iskandar Waterfront Holdings Sdn Bhd for a proposed joint venture development project in Bandar Malaysia.

Yesterday TRX City Sdn Bhd and IWH-CREC Sdn Bhd (ICSB) in a joint statement said the Restated and Amended Share Sale Agreement (RASSA) for the acquisition of 60% shares in Bandar Malaysia Sdn Bhd (BMSB) from TRX has lapsed on May 6, 2021.

“The company wishes to announce it has been notified by IWH on July 15, 2021 that the restated and amended share sale agreement executed between TRXC and IWH-CREC had lapsed.,

“Consequent on the above, the Company and IWH will no longer proceed with the HOA dated Dec 8, 2020 as it is now deemed null and void,” Ekovest stated in a filing to Bursa Malaysia today.

The Ekovest HOA with Iskandar Waterfront entails a proposed 40% share subscription by the former in a special purpose vehicle (SPV), which will be a wholly owned subsidiary of IWH, following IWH’s reorganisation.

Ekovest noted the HOA will be subject to the signing of the definitive agreement with IWH relating to the Bandar Malaysia project on a later date.

A deal would have allowed Ekovest to participate as a strategic investor in the megaproject project.

Ekovest estimated its total investment commitment for the proposed participation and investment in the Bandar Malaysia Project to be RM1.48 billion or 12% of the total purchase price paid by IWH-CREC to acquire a 60%-stake BMSB.

Ekovest shares fell 1.3% to 39 sen 40 sen at press time. Trading volume was 85% above the 20-day average for this time of the day.