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KUALA LUMPUR (Oct 30): Eco World Development Group Bhd (EcoWorld) said it has written to UEM Group to request for more time to consider the latter's proposal to merge with its unit UEM Sunrise Bhd.
"The board has requested until Jan 2, 2021 to respond with a decision to UEM Group to coincide with the date requested by UEM Sunrise," EcoWorld said in a bourse filing today.
It said the company will make further announcements on any material development in due course.
On Oct 5, UEM Group, the unlisted wholly-owned subsidiary of Khazanah Nasional Bhd, sent letters to the boards of its subsidiary UEM Sunrise and competitor EcoWorld for both to consider a merger via a share and warrant swap.
UEM Group said it proposed the merger as it saw a "pressing need for industry players to consolidate resources and capabilities" to withstand the headwinds that property developers were facing.
In the proposal, UEM Sunrise would issue new shares at 44.3 sen each and exchange them for EcoWorld shares at an exchange value of 46.9 sen each, for a swap ratio of 1.058.
The proposal would be implemented by way of members' scheme of arrangement between EcoWorld and its shareholders under Section 366 of the Companies Act 2016, it said.
Upon completion of the proposed merger, EcoWorld will become a wholly-owned subsidiary of UEM Sunrise and be delisted.
Shares in EcoWorld settled 1.5 sen or 3.95% lower at 36 sen at noon break, valuing it at RM1.07 billion. Meanwhile, UEM Sunrise fell one sen or 2.63% to 37 sen, for a market capitalisation of RM1.68 billion.
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