KUALA LUMPUR (April 27): Iskandar Waterfront City Bhd (KL:IWCITY) said on Monday it is seeking a further nine-month extension to evaluate a long-running takeover and restructuring proposal put forward by tycoon Tan Sri Lim Kang Hoo.
Lim had in September 2023 proposed a merger of the properties and assets of Iskandar Waterfront Holding (IWH) and IWCity under a single entity through the acquisition by IWCity of the entire issued share capital of all the direct subsidiaries of IWH.
The latest extension will be until Jan 27, 2027, according to IWCity's filing with Bursa Malaysia. IWCity previously had appointed an unnamed adviser in October 2023 to evaluate the proposal and has since obtained several extensions, with the most recent ending on Monday.
The new extension will allow IWCity more time to assess and deliberate the terms of the proposal in detail and to commence negotiations on the terms of the binding heads of agreement or its equivalent between the parties, the filing read.
The restructuring proposal is part of a broader plan by Lim, first announced in September 2023, to streamline and consolidate his property and construction assets under an enlarged Ekovest Bhd (KL:EKOVEST). The four proposals plan was for Lim to streamline the businesses and assets, consolidate his direct shareholding in the companies and avoid potential conflict of interests.
At that time, Lim also announced a proposal for Ekovest to acquire at least a 51% stake in Credence Resources Sdn Bhd — a vehicle controlled by Lim that holds a 63.13% stake in IWH — in a deal previously valued at about RM1.15 billion, to be satisfied via new Ekovest shares.
That proposal, however, lapsed in January after the expiry of its final deadline, with parties failing to conclude the transaction or secure a further extension at the time. Lim currently owns a 34.3% stake in IWCity and holds a 63.1% interest in IWH via Credence. He also serves as executive vice chairman of IWCity.
Lim's broader restructuring plan at that time also included merging the construction businesses of Ekovest and Knusford Bhd (KL:KNUSFOR), with Knusford proposing to acquire Ekovest Construction Sdn Bhd via a share issuance exercise. He holds close to 28% of Ekovest and 32% of Knusford.
Shares in IWCity settled half a sen or 2.13% higher at 24 sen, valuing the company at RM216.46 million. Year-to-date, its share price has declined more than 7%.