UEM Sunrise to Merge With Ecoworld in Share Swap Deal
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UEM Group Bhd has proposed property arm, UEM Sunrise and private property developer, Eco World Development should merge to form a larger group by an exchange of securities.
The parent group proposed the merger as it saw a "pressing need for industry players to consolidate resources and capabilities" to combat the challenges that property developers are currently facing.
“The proposed merger is envisaged to be carried out via an exchange of shares and warrants held by EcoWorld Malaysia’s shareholders and warrant holders into new shares and new warrants of UEM Sunrise respectively,” it said.
“The board will convene in the near term to deliberate on the proposed merger and will make a further announcement thereafter,” EcoWorld added.
In a separate filing, UEM Sunrise said the board will deliberate on the proposal and decide on the next course of action. Accordingly, a further announcement will be made in due course.
The proposed merger will be carried out via an exchange of shares and warrants. The holders of shares and warrants in EcoWorld will exchange their shares and warrants in EcoWorld respectively for new shares and warrants of UEM Sunrise, thereby becoming the holders of shares and warrants in the enlarged UEM Sunrise.
“Upon completion of the proposed merger, EcoWorld will become a wholly-owned subsidiary of UEM Sunrise and will be delisted from the Main Market of Bursa Malaysia Securities Bhd,” UEM Group said.
“We envisage that upon the completion of the proposed merger, the enlarged UEM Sunrise group will focus on property developments within Malaysia and the planned developments onlands owned by UEM Sunrise that is outside of Malaysia. This will allow the enlarged UEM Sunrise group to stay focused on property developments within Malaysia, UEM Group said.