IWCity

IWCity

Postby winston » Wed Nov 01, 2017 5:13 pm

vested

Lim Kang Hoo suffers setback in IWH-IWCity merger

by Chester Tay

KUALA LUMPUR: Tycoon Tan Sri Lim Kang Hoo has suffered a setback with his plan to merge Iskandar Waterfront Holdings Sdn Bhd (IWH) with its 38.35%-owned associate Iskandar Waterfront City Bhd (IWCity), which would see the establishment of one of the largest listed property developers on Bursa Malaysia.

In a surprise announcement yesterday, IWCity said the company and IWH have mutually agreed to terminate the proposed merger.

This follows a decision by the owners of the lands that were supposed to be injected into the enlarged IWH — Sultan of Johor Sultan Ibrahim Sultan Iskandar and Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) — to pull out of their participation in the restructuring exercise between the two companies.

“[Their pullout] will result in an unexpected substantial variation and reduction in the scale and scope of the proposed restructuring exercise,” IWCity told Bursa Malaysia yesterday.

As such, IWCity said the implementation of the proposed merger scheme and the proposed restructuring exercise is no longer consistent with the anticipated benefits and intentions which were originally envisaged by IWH.

“The parties are [also] unlikely to be in a position to fulfil the conditions precedent contemplated in the merger agreement within the originally anticipated time frame for fulfilment/obtainment,” it added.

However, the failed IWH-IWCity merger did not hold Lim back from exploring new opportunities. Lim, who is major shareholder and executive chairman of Ekovest Bhd, is now proposing Ekovest to buy the rest of the 62% shares not owned by IWH in IWCity through either a cash consideration of RM1.50 per share, valuing the company at RM1.25 billion, or a one-for-one share swap deal.

Lim and parties acting in concert currently own a controlling 63% stake in IWH, while KPRJ owns the remaining 37% stake. And Lim, through IWH, owns 38.35% of IWCity. He also owns a 32.38% stake in Ekovest.

It is understood that Lim intends to take IWCity private under the new proposal.

“Essentially, what the new proposal tries to achieve is to privatise IWCity. It is a good investment deal for Ekovest as the RM1.50 offer price represents a 60% discount over the open market value of IWCity.

The issuance of new shares at a premium of 28% to Ekovest’s current market price is also a good deal for Ekovest,” a source familiar with the proposed deal told The Edge Financial Daily yesterday.

The source said IWCity has an indicative open market value of RM3.68 billion.

This implied that the 62% IWCity stake Ekovest is acquiring is worth some RM2.3 billion or RM4.44 per share, which means that the offer price of RM1.50 per share or RM777.84 million is a 66% discount to IWCity’s indicative market value.

In May, IWH entered into a merger agreement with IWCity for a proposed one-for-one merger offer to take up the remaining 62% equity in the latter and assume the latter’s listing status. The board of directors of IWCity had until yesterday to deliberate on the proposed merger offer by IWH, after two extensions.

In tandem with the proposed merger, IWH was to have embarked on a proposed restructuring exercise with Lim —who is director cum executive vice-chairman of IWH — via an internal rationalisation of minority stakes within the IWH Group and various Johor state entities including KPRJ to consolidate the land bank under IWH. This will see an injection of 3,593 acres (1,454ha) of land with an open market value of RM4.1 billion into IWH.

In a separate filing yesterday, Ekovest said it had last Friday received a proposal letter from Lim to acquire the 62% stake in IWCity, which currently has 1,052 acres of land bank mainly in Johor.

Lim is also proposing to the board of IWH, which owns a 38% stake in IWCity, not to accept the offer from Ekovest. All parties have until Nov 30 to deliberate on Lim’s proposals.

Astramina Advisory Sdn Bhd has been appointed as the financial adviser for the proposed acquisition.

When contacted, the advisory firm’s managing director Wong Muh Rong said her team had evaluated the pros and cons of the proposed deal thoroughly.

“Before proceeding, we got all the support of all [major] shareholders and directors for decisions made,” she added.

Trading in both Ekovest and IWCity shares have been halted since Monday and will resume trading today. Ekovest’s share price last closed at RM1.16 last Friday, valuing the group at RM2.48 billion, while IWCity’s stock settled at RM1.40, bringing it a market capitalisation of RM1.17 billion.

Source: The Edge

http://www.theedgemarkets.com/article/l ... ity-merger
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Re: IWCity

Postby winston » Wed Nov 01, 2017 5:18 pm

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IWCity falls after co says 1Q net loss widened


by Chong Jin Hun

June 01, 2017

KUALA LUMPUR (June 1): Iskandar Waterfront City Bhd (IWCity) shares fell as much as seven sen or 4% after the property developer said first quarter net loss widened to RM56.46 million from a year earlier.

Yesterday, IWCity said net loss widened to RM56.46 million in the first quarter ended March 31, 2017 (1QFY17) from a net loss of RM4.8 million.

Revenue was, however, higher at RM13.65 million compared to RM8 million. The company's latest reported net assets per share stood at 96 sen.

Today, IWCity shares fell to their lowest so far at RM1.60.

At 10:20am, the stock pared losses at RM1.64 for a market value of RM1.4 billion.

IWCity saw some 12 million shares traded, making the stock Bursa Malaysia's 10th most-active entity.

Source: The Edge

http://www.theedgemarkets.com/article/i ... ss-widened
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Re: IWCity

Postby winston » Wed Nov 01, 2017 7:05 pm

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The changing face of Ekovest - highway owner to property player

This effectively caps IWC’s share price at the RM1.50 level, a far cry from the RM3.22 achieved on May 2, on the back of IWH becoming the master developer of the billion-ringgit Bandar Malaysia project.

However, recall that the Bandar Malaysia deal fell through.

In December 2015, IWH-CREC Sdn Bhd, a consortium comprising IWH and China Railway Engineering Corp (M) Sdn Bhd, executed a share sale and purchase agreement with 1Malaysia Development Bhd to acquire a 60% equity interest in Bandar Malaysia Sdn Bhd to jointly develop the project for RM7.4bil.

All was fine and dandy until May 3, when the Ministry of Finance Inc (MoF) terminated its agreement with the IWH-CREC consortium to be the master developer of Bandar Malaysia.

In a statement issued then, TRX City Sdn Bhd, an entity of the MoF, said that the consortium had failed to meet payment obligations outlined in the sale agreement for its planned purchase of 60% equity in Bandar Malaysia.

Meanwhile, in a separate announcement, IWC said that together with IWH, the companies have agreed to mutually terminate their earlier proposed merger scheme set out under the merger agreement.

“After taking into account the variation and reduction in the scale and scope of the proposed restructuring exercise, the implementation of the proposed merger scheme and the proposed restructuring exercise is no longer consistent with the anticipated benefits and intentions which were originally envisaged by IWH, and the parties are unlikely to be in a position to fulfil the conditions precedent contemplated in the merger agreement within the originally anticipated timeframe for fulfilment,” said IWC.

The proposed merger refers to IWH’s share swap agreement with IWC announced in March, that would have valued the joint entity at some RM6.5bil.

Back then, IWH was set to be one of the region’s biggest owners of land in cities via a merger that would see it taking over the listing status of IWC through a share swap between the two.

The new-look IWH would own up to 7,400 acres of land fronting the sea between Johor Baru and Singapore.

While this merger exercise did not include IWH’s 30% stake in Bandar Malaysia, there was much anticipation that when Bandar Malaysia was eventually developed, the valuation of IWH would increase significantly.

Things, however, took a turn for the worse when the MoF terminated IWH as the master developer of Bandar Malaysia in May.


Source: The Star

https://www.thestar.com.my/business/bus ... f-ekovest/
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Re: IWCity

Postby winston » Wed Nov 01, 2017 7:10 pm

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Why is Lim appeasing minorities of IW City?

By M Shanmugam

PETALING JAYA: The obvious beneficiary from Tan Sri Lim Kang Hoo’s latest corporate exercise involving Ekovest Bhd ’s takeover of Iskandar Waterfront City Bhd (IW City) are the minorities of the latter.

Ekovest meanwhile bears the brunt, as it would be potentially holding 62% of the asset heavy IW City if the deal goes through.

And Ekovest could potentially see a drain of up to RM725mil in its cash if minorities of IW City opt for the cash option in the proposed takeover.

The stock market has punished Ekovest, which is down more than 18% after it resumed trading.

Ironically, Lim and parties related to him is the biggest shareholder of Ekovest holding more than 50%.

On paper, Lim has lost RM200mil from merely announcing Ekovest’s proposed takeover of IW City because of the drop in market capitalisation.

What is surprising is Lim agreeing a proposal that sees his wealth reduce. And this is the second corporate exercise involving IW City, which only in May this year hit a high of RM3.22 per share.

Why is Lim appeasing to the IW City’s minorities and giving them an exit just three months after he lost the Bandar Malaysia deal? The dust has not even settled yet following the group’s failure in the Bandar Malaysia deal.

In May, IW City was seen as the main beneficiary following a proposal that its parent company, Iskandar Waterfront Holdings Sdn Bhd (IWH), would take over the listing status.

In December 2016, IWH was awarded the job to develop Bandar Malaysia with China Railway Engineering Company (CREC). However in August this year, the Ministry of Finance withdrew the award on grounds that the IWH-CREC joint venture had failed to meet its scheduled payment obligations.

Since then, IW City has gone on a tailspin, leaving its shareholders in a daze.

The latest offer is a way out for IW City minorities, crest fallen and wanting an exit. They have an option of getting cash RM1.50 per share or Ekovest shares, priced at RM1.50.

IWH is IW City’s biggest shareholder with 38% and they are not accepting Ekovest’s offer. However the rest of the shareholders would likely take it up because it is a way out for them after the Bandar Malaysia episode.

Going by the price of Ekovest which is now trading at 97 sen, the IW City minorities should opt for the cash option.

As for Ekovest, it the deal goes through, the construction and infrastructure company would be left holding as much as 62% of IW City, whose biggest appeal is 1,052 acres of waterfront land in Johor Baru.

IW City is a master developer and makes its money from selling land that it reclaims from the sea. The business model involves capital upfront and the company recoups over time through sales of land for development.

However the cash comes from lumpy payments, unlike the conventional property developers that see steady cash-flow from sales of house.

The upside for Ekovest is the future listing of IWH, which is a long term investment.

Source: The Star

https://www.thestar.com.my/business/bus ... f-iw-city/
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Re: IWCity

Postby winston » Thu Nov 02, 2017 8:10 am

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IWC minorities clear winners in Lim’s latest corporate move

by M. Shanmugam

He has proposed that Ekovest makes an offer for 62% of IWC.

PETALING JAYA: In the world of high finance, there is no such thing as a win-win situation. It’s only a matter of who stands to gain less.

In the proposed takeover by Ekovest Bhd of Iskandar Waterfront City Bhd (IWC), the obvious beneficiaries are the minorities of the latter. Both companies have a common shareholder in Tan Sri Lim Kang Hoo, the entrepreneur who started as a contractor and built an empire in property development.

Lim’s crown jewel is the huge tracts of waterfront land in Johor Baru, which has gained traction due to its proximity to Singapore. He has proposed that Ekovest makes an offer for 62% of IWC.

If the deal happens, then Ekovest would potentially be owning the asset-heavy IWC, which has land but will take a long time to develop it. Also, Ekovest could potentially see a drain of up to RM725mil in its cash coffers if minorities of IWC opt for the cash option in the proposed takeover.

Ironically, Lim and parties related to him are the biggest shareholders of Ekovest, holding more than 50%. On paper, Lim would have lost more than RM200mil after the announcement because of the decline in Ekovest’s market capitalisation.

It is hard to understand why Lim has agreed to a proposal that would see his wealth reducing. And this is the second corporate exercise involving IWC, which only in May this year hit a high of RM3.22 per share.

Why is Lim appeasing IWC’s minorities and giving them an exit just three months after he lost the Bandar Malaysia deal?

The dust has not even settled on the group’s setback in the Bandar Malaysia deal.

In May, IWC was seen as the main beneficiary of a proposal that its parent company, Iskandar Waterfront Holdings Sdn Bhd (IWH), would take over its listing status. The proposal thrust IWC into the role of proxy to the Bandar Malaysia property play.

In December 2016, IWH was awarded the job to develop Bandar Malaysia with China Railway Engineering Corp (CREC). However, in August this year, the Finance Ministry withdrew the award on the grounds that the IWH-CREC joint venture had failed to meet its scheduled payment obligations.

Since then, IWC has gone into a tailspin, leaving its shareholders in a daze.

The latest offer is a way out for crestfallen IWC minorities wanting to exit.

They have an option of getting RM1.50 cash per share or Ekovest shares, priced at RM1.50.

IWH is IWC’s biggest shareholder with 38% and it is not accepting Ekovest’s offer. However, the rest of the shareholders would likely take it up because it is a way out for them after the Bandar Malaysia episode.

Going by the drop in the share price of Ekovest, IWC minorities should opt for the cash option.

As for Ekovest, if the deal goes through, then the construction and infrastructure company would be left holding as much as 62% of IWC, whose biggest appeal is 1,052 acres of waterfront land in Johor Baru.

IWC is a master developer and makes its money from selling land that it reclaims from the sea. The business model involves capital upfront, which the company recoups over time through the sale of land for development.

However, the cash comes from lumpy payments, unlike the conventional property developers who see steady cash flows from the sale of houses.

The upside for Ekovest is the future listing of IWH, which is a longer-term investment. It will also be holding huge tracts of waterfront land at a cheap cost.

Value from holding the land can only be recovered over the long term unless the listing of IWH takes place next year as scheduled.

Source: The Star

http://www.thestar.com.my/business/busi ... rdgJumX.99
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Re: IWCity

Postby winston » Sun Nov 05, 2017 9:53 am

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Kang Hoo has his say

By Tee Lin Say

IWC is turning profitable in its upcoming third quarter to September.

There are also cashflows coming in from IWC’s existing property business and the payment from the land we sold to the Greenland Group.

The first payment for Lot 1A has come in on July 15. That will be reflected in our September results”.

“The vendor is the Shanghai government, so these are solid paymasters. They will be paying us in tranches from now until May 2020”.

Lim controls more than 50% of Ekovest and 38% of IWH.


For the second quarter to June 30, IWC turned around with a small profit of RM147,000 from a previous loss of RM3.82mil. Revenue dropped to RM12.51mil from RM21.41mil previously.

For the six-month period, it recorded losses of RM56.31mil from a previous loss of RM8.61mil. This was on the back of 11.07% drop in revenue to RM26.16mil.

As for the Greenland deal, recall that back in 2015, IWC had proposed to sell three pieces of land measuring 51.8ha in Plentong, Johor, held by IWC subsidiary Tebrau Bay Sdn Bhd, to Greenland Tebrau Sdn Bhd (GTSB) for RM2.37bil cash.


Based on the schedule of payments starting July 15, 2017 until May 5, 2020, GTSB needs to pay a grand total of RM2.13bil. The first payment of RM46.32mil for Lot 1A was completed on July 15. The entire Lot 1A will be completely paid by July 15, 2018, and cumulatively, IWC should have received RM231.62mil by then.

China-based Greenland is also IWC’s partner in a waterfront city project in Johor with an estimated gross development value of RM18.4bil.


Ekovest shares, which are currently priced at 99 sen, should theoretically be trading at RM1.50 should shareholders decide to exchange their IWC shares for Ekovest shares instead.


Source: The Star

https://www.thestar.com.my/business/bus ... s-his-say/
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Re: IWCity

Postby winston » Fri Apr 19, 2019 3:51 pm

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Ekovest, IWCity climb on hopes of Bandar Malaysia revival

Source: The Star

https://www.thestar.com.my/business/bus ... 5iZLRRR.99
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Re: IWCity

Postby winston » Tue Apr 23, 2019 7:53 am

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IWCity and Ekovest say not involved in reinstated Bandar Malaysia project

The government, on Friday, announced that it would reinstate the Bandar Malaysia project, that was terminated by the previous administration in May 2017.

The revised RM140bil development project will be awarded to the original consortium of Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp Sdn Bhd (IWH-CREC).

The consortium has 60 days to make an advance payment of RM500mil in addition to the original deposit sum of RM741mil within 60 days from the date the project was reinstated.

The consortium will take up a 60% stake in Bandar Malaysia Sdn Bhd, with the government holding the remaining 40% stake.


Source: The Star

https://www.thestar.com.my/business/bus ... ia-projec/
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Re: IWCity

Postby winston » Fri Nov 22, 2019 2:31 pm

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Ekovest falls 4.1% on plan to buy land from Iskandar Waterfront

by Nazuin Zulaikha Kamarulzaman

KUALA LUMPUR (Nov 22): Ekovest Bhd shares fell 4.1% in morning trades today following the group's proposal to buy 20 parcels of freehold development land in Johor Bahru for a total of RM1.05 billion from Iskandar Waterfront Holdings Sdn Bhd (IWH).

In a filing with Bursa Malaysia yesterday, the group said it has entered into two conditional agreements with IWH, via its wholly-owned unit Timur Terang Sdn Bhd.

The first agreement is to acquire 17 parcels of freehold development land measuring a total of 30.49 hectares (75.34 acres) for RM869.69 million, which will be satisfied through the issuance of irredeemable convertible preference shares worth RM849.89 million, and a cash payment of RM19.8 million.

The second agreement is to buy three parcels of land measuring 6.32 hectares (15.61 acres) for RM180.2 million, which will be fully satisfied in cash, Ekovest said.

The cash portion of RM200 million for the proposed acquisitions will be funded via internal funds, Ekovest added. As at June 30, 2019, Ekovest's cash and bank balances stood at RM830.07 million.

Source: The Edge

https://www.theedgemarkets.com/article/ ... waterfront
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