KUALA LUMPUR (April 27): Ekovest Bhd (KL:EKOVEST) said its proposed acquisition of four parcels of land earmarked for transit-oriented development along the Johor Bahru-Singapore Rapid Transit System (RTS) Link alignment will not proceed, after the parties allowed the binding term sheets to lapse following multiple extensions.
The company said the term sheets, first signed in October 2023 to negotiate definitive agreements for the acquisition, expired on Monday, as mutually agreed by all parties.
The lapse of the proposal is not expected to have any material financial, operational or legal impact on the company, said Ekovest in a Bursa Malaysia filing.
It added that it remains open to revisiting the proposed land acquisition should suitable opportunities arise in the future.
The proposed acquisition was part of a wider business consolidation unveiled in 2023 involving Ekovest, its major shareholder and executive chairman Tan Sri Lim Kang Hoo, Knusford Bhd (KL:KNUSFOR), and Credence Resources Sdn Bhd.
At the time, Ekovest had entered into binding term sheets to acquire about 15.82 acres of land in aggregate comprising two freehold parcels housing Danga City Mall and an expo centre, as well as two leasehold commercial parcels in Johor Bahru, for an indicative RM310 million.
The proposed purchase consideration was to be satisfied entirely via the issuance of new Ekovest shares at 60 sen each, subject to valuation, due diligence and execution of definitive agreements.
Ekovest had said then that the land parcels could strengthen its property development and investment businesses, given their proximity to the RTS Link and the potential spillover benefits from improved cross-border connectivity between Johor Bahru and Singapore.
Shares in Ekovest closed one sen or 4.26% lower at 22.5 sen, giving it a market capitalisation of RM667.2 million.