KUALA LUMPUR, Jan 13 — Eco World Development Group Bhd (EcoWorld Malaysia) has aborted the proposed merger with UEM Sunrise Bhd (UEMS) following a careful evaluation amid the current challenging environment with the Movement Control Order’s (MCO) re-implementation.
The company said the cessation of talks on the proposed merger would enable it to actively pursue other corporate proposals that may be more complementary to its present growth plans and strategies.
“The board wishes to thank UEM Group Bhd for its invitation to consider the proposed merger with UEMS and remains open to the possibility of future collaborations with UEMS, should another opportunity arise,” it said in a filing with Bursa Malaysia today.
Under the merger proposed by UEM Group in October last year, EcoWorld was to become a subsidiary of UEMS and be delisted from the Main Market of the stock exchange.
The Securities Commission has given the two parties until Jan 31 to decide whether to proceed with discussions on the proposed merger.
In a press statement today, EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the cessation of talks on the proposed merger would 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 per cent higher than the actual 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.
“This is a very encouraging result given November and December are typically quiet months for the property sector. Team EcoWorld’s ability to lock in these sales demonstrates how effectively they have transformed the overall sales process using every tool available, particularly digital and social media channels, to engage with customers and close sales,” he said.
Liew noted that the group would continue to work on further digitalising and improving every aspect of the sales process during the current MCO to push towards attainment of the overall target set for the year.
Trading of EcoWorld Malaysia and UEMS’ securities were halted at 2.30 pm today and resumed at 3.30 pm.