Good Articles to Share
Ekovest's acquisition of land from IWH: My take - felicity
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:
- 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?
- Does IWH has to pay cash to these guys? Or will IWH pay them in shares or any other ways?
- 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.
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Good Articles to Share
China mulls government buying of unsold homes to ease glut, Bloomberg reports
Created by Tan KW | May 15, 2024
Discussions
2 people like this. Showing 11 of 11 comments
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
2019-11-23 17:02
Botak share better dont touch....unless play short term.
Botak pattern like vincent tan...make use of share market to exploit for own benefit.
2019-11-23 20:21
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.
2019-11-23 20:51
Uptrending, I have people who works there. The high costs because of it is an elevated highway the entire stretch.
2019-11-24 10:38
SPE is the first ever elevated highway with double deck at certain route such as along bandar malaysia section.
2019-11-24 18:00
dealing with botak breeds loses for whole eco chain usually. that goes for its suppliers, subcontractors, shareholders?.... proven in johor....
2019-11-24 18:04
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
2019-11-25 06:16
Post a Comment
Featured Posts
Don't Miss Out: Up to USD1,000 in Our Lucky Draw!
MQ Trading Signals
Time
Signal
Duration
Type
2024-05-15 15:35:00
ADX
5 Mins
SELL
2024-05-15 14:40:00
OBV
10 Mins
SELL
2024-05-15 12:20:00
EMA 5
10 Mins
SELL
2024-05-15 12:20:00
EMA 5
5 Mins
SELL
2024-05-15 12:10:00
EMA 5
10 Mins
BUY
Apps
Top Articles
1
Koon Yew Yin's Blog
2
3
4
6
8
Good Articles to Share
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
uptrending
Ekovest's SPE 29km costs 3.75 B. Isn't it very costly!?
2019-11-23 16:51