Thursday 16 October 2014

EcoWorld keen to buy 30% stake in real estate SPAC

KUALA LUMPUR: EcoWorld Development Group Bhd has expressed interest to subscribe to a 30 per cent stake worth RM562.5 million in Eco World International Bhd, a real-estate special purpose acquisition company.

In a filing to Bursa Malaysia, EcoWorld said the proposed subscription is the most appropriate means for EcoWorld to venture overseas in a significant manner without over-leveraging on the company’s financial resources.

EcoWorld has decided that it will not deliberate further nor accept the offer to acquire 0.47ha at 76-82 & 100 Church Street, Parramatta, New South Wales, Australia, as announced months earlier.

Eco World International’s proposal to undertake a listing and quotation for its securities on the Main Market as a SPAC was announced earlier yesterday in a separate announcement.

Over the last several months, EcoWorld has announced a series of acquisitions and corporate exercises to expand its land bank and scale up business operations in three key regions in Malaysia, namely the Klang Valley, Iskandar Malaysia, Johor and Penang.

The recent success of its launches in the Klang Valley (EcoSky, EcoMajestic) and Iskandar Malaysia (EcoBotanic, EcoSpring, EcoSummer and Eco Business Park 1) have further reinforced EcoWorld’s growing brand presence in Malaysia.

With a strong foundation now laid as a developer of townships and green business parks, the board is in the midst of evaluating several proposals for EcoWorld to venture into, it said.

“This includes expanding into matured overseas markets, such as Australia and the United Kingdom,” EcoWorld said.

The proposed subscription will enable EcoWorld to venture overseas via investing in a property SPAC with a management team that has a proven track record in identifying, acquiring and implementing overseas projects.


Source: https://my.news.yahoo.com/ecoworld-keen-buy-30pc-stake-152841839.html

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