Ekovest to bid for more Iskandar jobs

Ekovest to bid for more Iskandar jobs
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Thursday, 18 April 2013 12:09


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KUALA LUMPUR: EKOVEST BHD [], the CONSTRUCTION [] outfit of Tan Sri Lim Kang Hoo, will be bidding for more contracts in the Iskandar Malaysia region from another company within his stable, Iskandar Waterfront Holdings Sdn Bhd (IWH).

“When we bid for those jobs, we will of course declare and seek our shareholders’ mandate because it would be a related party transaction,” Ekovest managing director Lim Keng Cheng said after the company EGM yesterday.

Keng Cheng, who is Kang Hoo’s nephew, said the company would also bid for construction contracts to be awarded by other firms in the fast growing growth corridor in Johor. For the time being, Ekovest will concentrate on the greater KL area.

Ekovest has jobs worth more than RM100 million in IWH’s gem Danga Bay in Johor. The company has tendered for RM1 billion worth of construction and reclamation jobs.

IWH, 60% owned by Kang Hoo via Credence Resources Sdn Bhd, is a government-linked company incorporated as the master developer of 4,000 acres (1,600ha) of prime waterfront land in Johor Baru.

This massive development, with a projected GDV of RM60 billion, will be undertaken in phases over a 25-year period. The other shareholders of IWH are Kumpulan Prasarana Rakyat Johor, the Employees Provident Fund and Khazanah Nasional Bhd.

On the proposed listing of IWH, Keng Cheng declined to comment when the IPO would take place. “This is not the forum for me to reveal anything. At the moment, consultants are working on it and that is really all I can say,” he said.

It was earlier reported that the IWH IPO was slated for June and is expected to raise more than RM1 billion.

At the EGM, shareholders approved the share swap between Ekovest and Wira Kristal Sdn Bhd, which owns the Duke Highway concession. They also approved the exemption sought by Kang Hoo and parties in concert from undertaking a mandatory general offer for the rest of Ekovest shares.

Ekovest will issue 126.7 million shares at RM2.57 each to owners of Wira Kristal, Kang Hoo (40%) and Datuk Haris Onn Hussein (60%), in exchange for a 100% stake in the investment holding company.

This will result in Kang Hoo and parties increasing their equity interest in Ekovest to 66.1% from 42.1%.

Ekovest is buying Wira Kristal for RM325.86 million. Wira Kristal owns 70% of Nuzen Corp Sdn Bhd, which has a 34-year concession for the Duke Highway, expiring in 2039.

“Now that we have gained our shareholders’ approval, we will be applying to the Securities Commission for an exemption. We want to keep Ekovest as a listed company. It would also be easier for us to raise funds for our future projects,” Keng Cheng said.




This article first appeared in The Edge Financial Daily, on April 18, 2013.