Eco Horizon at Batu Kawan, Penang

Tan Sri Syed Mokhtar Albukhary has acquired a substantial stake in Eco World Development Group Bhd and its sister company, expanding the tycoon’s portfolio of developers.

The shares in EcoWorld, equivalent to 30.1%, were sold by former deputy chairman Datuk Leong Kok Wah through a private vehicle, according to an exchange filing on Monday. The sale also resulted in Syed Mokhtar controlling a 33.28% stake in EWI Capital Bhd.

The transaction details were not disclosed. Based on May 15’s closing price, the stakes in EcoWorld and EWI Capital would’ve been worth over RM2 billion combined.

EcoWorld executive chairman Tan Sri Liew Kee Sin thanked Leong’s support as a shareholder over the past 13 years in a statement.

“We welcome Tan Sri Syed Mokhtar as the new substantial shareholder of EcoWorld, and we look forward to working with him to take EcoWorld to greater heights in the years ahead,” he added.

The acquisition comes at a time when Syed Mokhtar is reportedly considering an initial public offering (IPO) of its joint venture Australian developer Walker Corp. The IPO of WM Senibong Bhd could raise as much as RM500 million, according to an April Bloomberg report.

Syed Mokhtar’s property flagship is Tradewinds Corporation Bhd, which also owns hotels and resorts as well as invests in commercial properties.

Leong transferred all of his shares in Syabas Tropikal Sdn Bhd to Syed Mokhtar on May 15. Syabas Tropikal owns 100% of Sinarmas Harta Sdn Bhd, which in turn holds the EcoWorld shares. EcoWorld is also the holding company of Eco World Capital (International) Sdn Bhd.

Sinarmas and Eco World Capital hold direct shareholdings in EWI Capital. Leong similarly ceased to be a substantial shareholder in EWI Capital after the transfer of his shares in Syabas Tropikal.

EcoWorld owns more than 12,000 acres of land that could be developed into properties worth RM100 billion across Klang Valley, Johor, Penang and Negeri Sembilan. EWI Capital, formerly known as Eco World International Bhd, mainly develops properties in the UK and Australia.

Shares of EcoWorld closed up one sen or 0.48% at RM2.09 on Monday, giving the company a market capitalisation of RM6.7 billion ahead of the announcement. Meanwhile, EWI Capital closed unchanged at 19 sen, valuing it at RM456 million.

Source: TheEdgeMalaysia.com

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