News: EcoWorld, UEM Sunrise Proposed Merger Aborted

Jan 14, 2021

Eco World Development Group Berhad (EcoWorld Malaysia) has ended talks for its proposed merger with UEM Sunrise Berhad (UEMS).

The decision comes after careful evaluation by EcoWorld Malaysia’s board, given the current challenging environment with the re-introduction of the Movement Control Order (MCO), according to the company’s Bursa filing.

“The board wishes to thank UEM Group Bhd for its invitation to consider the proposed merger with UEMS and remains open to the possibility of future collaborations with UEMS, should another opportunity arise,” it said.

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EcoWorld Malaysia noted that the cessation of talks will allow the group to actively pursue other corporate proposals which may be more complementary to its growth plans and strategies.

Under the proposed merger by UEM Group in October 2020, EcoWorld Malaysia will be delisted from Bursa Malaysia’s Main Market and become a subsidiary of UEMS.

The two parties were given until 31 January 2021 by the Securities Commission to decide whether they will push through with the merger.

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin stated that the cessation of talks allows the group to focus on its business plans for the financial year ending 31 October 2021 (FY2021), which includes a RM2.875 billion sales target.

The figure is 25% higher compared to the group’s actual sales for FY2020 at RM2.3 billion.

With this, Liew revealed that the group had already achieved RM500 million sales during the first two months of FY2021.

“This is a very encouraging result given November and December are typically quiet months for the property sector.

“Team EcoWorld’s ability to lock in these sales demonstrates how effectively they have transformed the overall sales process using every tool available, particularly digital and social media channels, to engage with customers and close sales,” he said as quoted by Bernama.

He added that the group will work on further improving and digitalising each aspect of the sales process during the present MCO to achieve the overall sales target for the year.

 

Image source from Berita Harian

 

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