Wednesday 23 Oct 2024
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KUALA LUMPUR (July 29): Infrastructure and construction group Ekovest Bhd (KL:EKOVEST) said it is disposing of another four parcels of land along Jalan Pahang in Kuala Lumpur, measuring a total of 2,286 sq m.

The disposal of the parcels to Airman Sdn Bhd, a wholly owned subsidiary of Lim Seong Hai Holdings Sdn Bhd (LSHHSB), for RM9.82 million is deemed a related party transaction,  as Ekovest's non-independent and non-executive director Tan Sri Lim Keng Cheng is a major shareholder and director of LSHHSB with a 25% stake.  

The other shareholders of Airman, with a 25% stake each, are Datuk Lim Keng Guan, Lim Pak Lian and Lim Keng Hun.

The expected gain from the proposed disposal is RM3.51 million, Ekovest said in a filing with Bursa Malaysia, adding that the proceeds will be used for general working capital purposes.

On Feb 22, Ekovest had divested 13 parcels of land measuring a total of 12,400 sq m in the same area to LSHHSB, for RM66.8 million.

The land is located on the left side of Jalan Pahang, when travelling from Kuala Lumpur city centre and Bulatan Pahang towards Gombak and Setapak localities.  

According to Ekovest, it had intended to integrate the land parcels into a mixed development project to be known as EkoQuay, but the development order had expired in February 2021.  

Ekovest shares fell two sen or 4.3% to 44.5 sen on Monday, valuing the group at RM1.32 billion.  

Edited ByS Kanagaraju
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