| Type | Announcement |
| Subject | OTHERS |
| Description |
RECEIPT OF AN EXCLUSIVE OFFER FROM ISKANDAR WATERFRONT HOLDINGS SDN BHD ("IWH") IN RELATION TO AN EXCLUSIVE NEGOTIATION TO FINALISE THE PARTICIPATION OF EKOVEST AS A JOINT VENTURE PARTNER CUM INVESTOR IN THE BANDAR MALAYSIA DEVELOPMENT PROJECT |
The Company had on 8 September 2020 received a letter dated 7 September 2020 from IWH (“Letter”) in relation to an exclusive offer to the Company to enter into exclusive negotiation with IWH to explore the participation of the Company as a strategic investor in the Bandar Malaysia development project, through the proposed acquisition by the Company of 40% of the equity interest held by IWH in IWH CREC Sdn Bhd (“IWH-CREC”) (“Proposal”).
IWH, through IWH-CREC, a joint venture vehicle between IWH and China Railway Engineering Corporation (M) Sdn Bhd (“CRECM”)(a wholly owned company of the China state-owned company, China Railway Group Limited (CREC), which is a Fortune Global 500 company), had on 17 December 2019 entered into a restated and amended share sale agreement with TRX City Sdn Bhd (“TRXC”) (an indirect wholly owned subsidiary of the Ministry of Finance Malaysia) in relation to the acquisition by IWH-CREC of a 60% equity interest in Bandar Malaysia Sdn Bhd to undertake the development of the Bandar Malaysia project.
The Board of Directors of the Company (“Board”) wishes to announce that the Board has agreed to commence exclusive negotiation to finalize with IWH in relation to the Proposal, with a view towards entering into agreement within 30 market days from the acceptance of the Letter, unless extended with the consent of both parties.
The Proposal is subject to the approvals, waivers or consents of all relevant parties include, among others, CRECM and TRXC.
IWH takes cognizance of Ekovest as being one of its long-term trusted business partners that has the necessary skills and technical know-how to undertake largescale infrastructure developments. The Bandar Malaysia Project is a prime national economic project, in which Ekovest’s direct participation and investment in IWH-CREC will potentially generate billions in order book sales arising from future infrastructure and development of Bandar Malaysia, which has an estimated gross development value (GDV) of approximately RM140 billion.
Further announcement will be made by the Company in due course upon the outcomes of the exclusive negotiation.
This announcement is dated 8 September 2020.
| Company Name | EKOVEST BERHAD |
| Stock Name | EKOVEST |
| Date Announced | 08 Sep 2020 |
| Category | General Announcement for PLC |
| Reference Number | GA1-08092020-00083 |