Iskandar Waterfront City, Ekovest shares down on new merger plan

PETALING JAYA: Iskandar Waterfront City Bhd (IWC) and Ekovest Bhd shares reacted negatively to local tycoon Tan Sri Lim Kang Hoo’s new proposal to merge the two companies after the merger deal between IWC and its parent company Iskandar Waterfront Holdings Sdn Bhd (IWH) fell through today.
IWC shares fell as much as 12 sen or 8.6% to RM1.28, before ending the day 11 sen or 7.9% lower at RM1.29, with some 32.33 million shares changing hands.
Ekovest also saw heightened selling pressure, with its share price plunging as much as 25 sen or 21.6% to 91 sen. At the market close, it went down 21 sen or 18.1% to 95 sen. It was the most actively traded stock on some 366.5 million shares traded.
The end of the IWC-IWH deal did not stop Lim from coming out with another merger deal, this time proposing the merger of IWC and Ekovest, which are involved in construction and property development.
Ekovest’s offer price for IWC is RM1.50 a share, valuing IWC at RM1.26 billion. IWH owns a 38% stake in IWC, and Kumpulan Prasarana Rakyat Johor a 6% equity interest.