KUALA LUMPUR – Shares of Eco World Development Group Bhd (EcoWorld Malaysia) gained half a sen to 46 sen after it decided to abort a proposed merger with UEM Sunrise Bhd.
About 1.13 millions shares were traded at lunch break.
UEM Sunrise's share price, on the other hand, lost one sen to 42.5 sen, with 2.41 million shares changing hands.
EcoWorld Malaysa said the cessation of talks on the proposed merger will enable it to actively pursue other corporate proposals that may be more complementary to its present growth plans and strategies.
Chairman Tan Sri Liew Kee Sin said the cancellation of the merger will also enable the group to focus on its own business plans for the financial year ending Oct 31, 2021 (FY21), which includes a sales target of RM2.875 billion – 25% higher than the RM2.3 billion sales recorded in FY20.
“On this note, we have got off to a very strong start with RM500 million sales already achieved in the first two months of FY21," he said.
On October 5, last year, UEM Group Bhd (UEM) announced its proposal for UEM Sunrise and EcoWorld Malaysia to consider and deliberate on a potential merger between the two companies, thus creating one of Malaysia’s largest property companies.
UEM is a wholly owned subsidiary of Khazanah Nasional Bhd. – Bernama, January 14, 2021