Highlights

Good Articles to Share

Author: Tan KW   |   Latest post: Wed, 22 Jan 2020, 7:10 PM

 

Ekovest's acquisition of land from IWH: My take - felicity

Author:   |    Publish date:


Friday, November 22, 2019

 

What the deal is about.
 
Ekovest buying 2 blocks of land from IWH which IWH does not own until this deal is done, ironically. Hence, IWH is actually acting as a middleman and in return IWH owns 32% of Ekovest. Lim Kang Hoo will increase his shareholding in Ekovest, backdoor through IWH as he is a larger shareholder of IWH through Credence at 63.13%. Ekovest pays about RM200 million for the land and another RM800 million through issuance of new ICPS (Irredeemable Convertible Preference Shares) to IWH. The ICPS which is convertible to Ekovest’s shares at RM1 will allow IWH to be a 32% shareholder of Ekovest.  This will solidify LKH’s ownership of Ekovest. His shareholding (direct and indirect) will increase from 29.8% to 44.4%.
 
 
The land was part of the land in the original exercise which failed, in the proposed IWH-IWCITY merger back in 2017. As below, in that proposed deal, the merged entity is to acquire land from the same companies although not from as many sellers.
 
 
 
The deal has nothing to do with Bandar Malaysia, if any yet. We know that IWH together with CREC was awarded with the contract for Bandar Malaysia but details of the project is yet to be announced. The thing I can see is that IWH is now getting closer to Ekovest. Whether it is good or bad, we do not know. I can see that neither IWCITY or IWH are construction companies. Ekovest is. Bandar Malaysia needs lot of these kind of work as the entire development is RM140 billion in GDV. One will need a master developer and master contractor. LKH is not going to let CREC take all.
 
For Ekovest’s shareholders, the situation is hard to read as we do not know several things:
 
  1. We do not know much about the deal between IWH and Straits Bay Sdn Bhd and Empomas Holdings Sdn Bhd. Who are the owners? How are the payment made?
  2. Does IWH has to pay cash to these guys? Or will IWH pay them in shares or any other ways?
  3. Why is IWH acquiring these 2 pieces of land? This looks questionable. Land in Johor will not see much development unless they are strategic to any government's projects in the near future. This I am not able to decipher.
 
One thing that is happening is that the owners of Ekovest are thinking big. It is growing Ekovest in terms of market value at the expense of dilution to minority shareholders. However, for the shareholders which include me, we know that the group is not staying put at 2 highways and a few plots of good land. The elephant in the room as all have been talking about is the old military airport land and its development.
 
I believe this is not the last of the deals.
 
Posted by at
 
 

 

Share this
Labels: EKOVEST

Related Stocks

Chart Stock Name Last Change Volume 
EKOVEST 0.725 -0.01 (1.36%) 15,195,200 

  2 people like this.
 
uptrending Ekovest's SPE 29km costs 3.75 B. Isn't it very costly!?
23/11/2019 4:51 PM
Icon8888 I sold ekovest in 2018 at huge loss

The series of RPTs are disconcerting

I do not want to have anything to do with them anymore
23/11/2019 5:02 PM
probability Dont they need to get shareholder approval for such major decisions
23/11/2019 8:12 PM
newbie911 Botak share better dont touch....unless play short term.
Botak pattern like vincent tan...make use of share market to exploit for own benefit.
23/11/2019 8:21 PM
Felicity not that bad. the way I look at it is consolidation under 1 company i.e. Ekovest. He used to have companies under individual holdings. And LKH used to be very quiet. If he wanted act like Vincent tan, he would have done this long time ago.
Under his various holdings, there are challenges as it involves Johor state holdings. Without consolidation, one would blame him for related party transactions.
Vincent Tan was doing cross holdings. Ekovest, IWCITY and rest are not doing that. Anyway cross holdings is now not permitted.
23/11/2019 8:51 PM
Felicity Uptrending, I have people who works there. The high costs because of it is an elevated highway the entire stretch.
24/11/2019 10:38 AM
ymtan SPE is the first ever elevated highway with double deck at certain route such as along bandar malaysia section.
24/11/2019 6:00 PM
cheoky dealing with botak breeds loses for whole eco chain usually. that goes for its suppliers, subcontractors, shareholders?.... proven in johor....
24/11/2019 6:04 PM
cheoky hit n run can. long term... there are better options.
24/11/2019 6:04 PM
RainT oh no for long term this EKOVEST
24/11/2019 11:54 PM
Jonathan Keung Quite interesting development s at Ekovest. All we know Botak is aiming big at Ekovest by converting the warrants into mother shares. Botak is switching it's bet between IWH , BM , Ekovest respectively. The land acquisition is just put of a deal. Look at a dinner prints . Maybe we can get more answer coming AGM. But we need to ask Botak at the meeting
25/11/2019 6:16 AM


 

431  309  530  716 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 PWRWELL 0.285+0.03 
 VC 0.085-0.005 
 SUPERMX 1.54+0.09 
 ICON 0.415+0.295 
 XDL 0.165+0.005 
 HSI-H8K 0.135-0.055 
 OCR-PA 0.0250.00 
 MYEG 1.14+0.03 
 HSI-C7K 0.395+0.085 
 DGB 0.135-0.005 

FEATURED POSTS

1. Leveraged & Inverse ETF CMS
Partners & Brokers