Property News

Ekovest agrees to six-month extension for merger discussion between subsidiary and Knusford

KUALA LUMPUR (July 26): Ekovest Bhd (KL:EKOVEST) said it has agreed to a further extension of time to discuss a merger between its wholly owned subsidiary Ekovest Construction Sdn Bhd (ECSB) and Knusford Bhd (KL:KNUSFOR).
The six-month extension to Jan 27, 2025 will provide Ekovest and Knusford with additional time to evaluate and deliberate the terms of the definitive agreement for the proposed merger, Ekovest said in a bourse filing on Friday.
The deadline was previously extended by two months from May 28, 2024 to from July 28, 2024. 
In October last year, Ekovest entered into a binding heads of merger agreement with its major shareholders, Tan Sri Lim Kang Hoo, and another sister company, Knusford Bhd, with the aim of consolidating Lim’s construction and construction-related businesses. 
Under the proposal, Ekovest will dispose of its entire stake in ECSB to Knusford for RM450 million. Knusford will finance the purchase via the issuance of new shares at 60 sen per share.
Lim is a major shareholder in Ekovest and Knusford, with a 28.01% stake in Ekovest and a 33.15% stake in Knusford.
He is the executive chairman of Ekovest, while his son Lim Chen Herng is an executive director in Knusford.
Ekovest’s share price closed unchanged at 46.5 sen, bringing the group a market capitalisation of RM1.38 billion. Knusford also finished unchanged at 80 sen, valuing the company at RM80 million.
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Source: EdgeProp.my