Share
KUALA LUMPUR (Jan 27): Ekovest Bhd (KL:EKOVEST) has extended by another three months a 2023 deal to acquire four parcels of land along the Johor Bahru–Singapore RTS Link, with the deadline now set for April 27, 2026, as it continues negotiations.
In a filing, Ekovest and its vendors agreed to extend the deal by three months, from Jan 28 to April 27, 2026, to allow more time for review and negotiations. The deal, originally planned for April 2024, has now been extended five times.
The company signed binding term sheet agreements with two parties on Oct 27, 2023, for a proposed RM310 million acquisition covering 15.82 acres for potential transit-oriented development.
The first deal was signed with Mohamad Nor Hamid and Lee Hun Yeung to purchase two parcels of freehold land totalling 6.18-acres, which currently houses Danga City Mall and an expo building, from Danga City Mall Sdn Bhd (DCMSB) for RM210 million. The second deal was signed with Cheong Meow Yen and Desa Sinarmas Sdn Bhd to purchase two leasehold parcels totalling 9.64 acres from Khazanah Melati Sdn Bhd for RM100 million.
Both companies are related to Ekovest’s substantial shareholder Tan Sri Lim Kang Hoo by virtue of the 86.071 million redeemable preference shares he owns in DCMSB and a loan he extended to Khazanah Melati. Lim holds a 20.059% direct and 11.225% indirect interest in the company.
According to the term sheet agreements, Ekovest has the option to acquire the land directly or by buying all the shares of DCMSB and Khazanah Melati. Payment is expected to be settled through the issuance of new Ekovest shares at 60 sen each. Ekovest’s shares have fallen 55% and last closed down 1.82% at 27 sen, giving the company a market value of RM800.7 million.
In its October 2023 filing with the bourse, it said the acquisition is intended to strengthen Ekovest’s property development and investment business by tapping into demand driven by the RTS Link’s improved connectivity to Singapore.
The deal comes a day after Ekovest allowed its proposed RM1.15 billion acquisition of Credence Resources Bhd from Lim to lapse. Ekovest said in a filing that the heads of agreement (HOA) with Lim, which set out the terms for the acquisition, expired on Jan 26, 2026, after being extended nine times since the deal was first announced.
Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.
