BUSINESSMAN Tan Sri Lim Kang Hoo (picture) has proposed a series of corporate restructuring and merger plans involving several companies in which he holds a major stake.
The proposals are aimed at streamlining and consolidating various businesses and assets under his control.
Merger of Construction Businesses
The first proposal involves the merger of the construction businesses of Ekovest Bhd and Knusford Bhd.
Knusford is proposed to acquire the entire issued share capital of Ekovest Construction Sdn Bhd, which is a wholly-owned subsidiary of Ekovest.
The purchase consideration would be satisfied through the issuance of new ordinary shares in Knusford at the proposed issue price of 60 sen per new Knusford share.
Acquisition of Lands for Transit-Oriented Development (TOD):
The second proposal involves Ekovest’s acquisition of three parcels of land, totaling approximately 17 acres in Johor Bahru.
These lands are intended for potential TOD projects along the alignment of the Johor Bahru–Singapore Rapid Transit System Link.
The purchase consideration for TOD 2 and TOD 3 would be a combination of cash and the issuance of new ordinary shares in Ekovest at the proposed issue price of 60 sen per new Ekovest share.
Acquisition of Credence Resources:
The third proposal suggests Ekovest’s acquisition of at least 51% or more of the issued share capital of Credence Resources Sdn Bhd, which presently holds a significant equity interest in Iskandar Waterfront Holdings (IWH) and, indirectly, in Iskandar Waterfront City (IWCity).
The purchase consideration would be satisfied through the issuance of new ordinary shares in Ekovest at the proposed issue price of 60 sen per new Ekovest share.
Merger of Properties and Assets:
The fourth proposal involves the merger of the properties and assets of IWH and IWCity under a single entity.
IWCity would acquire the entire issued share capital of all the existing direct subsidiaries of IWH.
The purchase consideration would be satisfied through the issuance of new ordinary shares in IWCity to IWH at the proposed issue price of 80 sen per new IWCity share.
These proposals are intended to consolidate assets, resources, and capabilities of the involved companies under the umbrella of Ekovest.
The overarching goal is to enhance the performance, competitiveness, and sustainability of the conglomerate, given the similarity in their core businesses.
It’s important to note that these corporate proposals are not necessarily dependent on each other and can be implemented separately and independently based on the decisions of the respective boards of directors of the involved companies.
These measures are also intended to address any potential conflicts of interest and concerns related to related party transactions among the companies.
The target corporate structure post completion of the proposals is as follows: