Monday 17 Jun 2024
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A press release by Eco World International Bhd:

KUALA LUMPUR (Aug 28): We refer to the article with the title"‘Eco World International declares bumper dividend; three shareholders stand to receive RM550 million" published in The Edge Malaysia’s online CEO Morning Brief, Issue 0626 on Aug 25, 2023, which was subsequently picked up by other online portals and blogs.  

Eco World International Bhd noted the article contains several incorrect statements/inferences about amounts to be received by individual shareholders of the company, as follows: 

Its largest shareholder Datuk Leong Kok Wah, through his direct holdings, Eco World Capital (International) Sdn Bhd and Sinarmas Harta Sdn Bhd, owns some 728.73 million shares or a 30.3% stake in the real estate developer, entitling him to some RM240.48 million of the total dividend. 

Tan Sri Quek Leng Chan, through GLL EWI (HK) Ltd, a unit of Singapore-listed GuocoLand Ltd, owns a 27% stake or 648 million shares, giving rise to an entitlement of RM213.84 million from the total dividend payout of RM792 million. 

This press release aims to provide voluntary clarification as follows:  

1) We wish to clarify that the first interim dividend of 33 sen per share will be paid to shareholders who directly hold shares in EcoWorld International as at the entitlement date. In this regard, the direct shareholdings of the individuals and entities mentioned in the above article as at [July 31,] 2023 are as follows: 

Name of shareholders 

No of ordinary shares held as at July 31, 2023

Total cash to be received  from dividend^

 

Direct 

RM

Datuk Leong Kok Wah 

2,000,000 

0.08 

660,000

Sinarmas Harta Sdn Bhd 

78,726,900 

3.28 

25,979,877

EW Capital (100% subsidiary of  EcoWorld Malaysia)

648,000,000 

27.0 

213,840,000

GLL EWI (HK) Ltd (100% subsidiary of GLL)

648,000,000 

27.0 

213,840,000

^ Assuming no change in the number of EcoWorld International shares directly held by these shareholders as at the entitlement date.

2) The statement that Datuk Leong Kok Wah is entitled to some RM240.48 million of the total dividend is therefore incorrect. 

Note that 27% of the EcoWorld International shares attributed to Datuk Leong is owned by Eco World Capital (International) Sdn Bhd (EW Capital), a wholly-owned subsidiary of Eco World Development Group Bhd (EcoWorld Malaysia), another public listed company in Malaysia.

While Leong has a deemed interest in EcoWorld International via his substantial shareholding in EcoWorld Malaysia, he will not receive RM213.84 million of the dividend in his personal capacity. 

Instead, this will be paid to EW Capital as the direct shareholder owning the 27% stake. 

3) Similarly, the inference that Tan Sri Quek Leng Chan will be entitled to RM213.84 million from the total dividend payout of RM792 million is incorrect.  

Note that the dividend will be paid to GLL EWI (HK) Ltd, a wholly owned subsidiary of GuocoLand Ltd. While Quek has a deemed interest in EcoWorld International via GLL, he is not the sole shareholder of GLL which is publicly listed in Singapore. Hence, an inference that Quek is entitled to the entire sum of RM213.84 million is erroneous. 

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