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A file picture shows crowds checking out a scale model
of Eco World’s project recently.
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It is a record of sorts because not only is it the first property SPAC to be listed on Bursa, it is also the biggest in terms of funds raised after Reach Energy Bhd’s RM1bil initial public offering in August this year.
The SPAC, known as Eco World International Bhd (EWI), is led by the property magnate, Datuk Teow Leong Seng, Datuk Heah Kok Boon and other experienced team members.
Among the three, it is believed that Teow would be heading the management team of the SPAC.
It is understood that EWI would submit its application to the Securities Commission in the next few weeks. Eco World Development Bhd (EcoWorld) had to disclose its interest to acquire a stake in EWI because the intention was deemed material.
“EWI has no operations or income generating business at the moment but it is undertaking the proposed EWI listing for the purposes of raising funds to acquire real estate assets such as vacant land and/or redevelopment projects overseas in countries such as the United Kingdom and Australia,” Ecoworld said in an announcement.
EcoWorld has expressed its interest in subscribing to 30% of EWI’s enlarged issued and paid up capital for RM562.5mil.
The stake comprises of 1.125 billion EWI shares at an indicative issue price of 50 sen apiece that comes with 1.125 billion free detachable warrants.
EcoWorld said it was in the midst of evaluating several proposals to venture
into new markets and the proposed subscription would enable it to venture
overseas via investing in a property SPAC with a management team that has a
proven track record.
Liew is well known for his stint in SP Setia Bhd where it undertook the re-development of the Battersea Power Station in London where he is still playing a pivotal role.
However, Liew left SP Setia in April this year and most of the staff in the company are now with EcoWorld, formerly known as Focal Aims Holdings Bhd. However, EcoWorld is a relatively small company and its subscription for shares in a SPAC is a fast way for it to expand its wings outside Malaysia.
“Apart from income contribution towards the group, the investment in EWI has the potential of boosting sales in EW Bhd’s Malaysian projects, through its association with the EWI brand when it is established globally,” it noted.
EcoWorld said it would be able to gain exposure in the international real estate market without incurring much costs and resources so that it, stay could focused on its local businesses.
“As a listed entity in its own right, EWI would also be able to undertake a larger and more diversified pool of projects globally than EcoWorld would be able to do on its own,” it added.
With that, it announced to forgo the offer for the acquisition of the 1.18 acres in Sydney, Australia for
A$28mil (RM80.33mil) to develop over 300 units of apartments.
The developer also said expression of interest did not constitute an offer to subscribe for the securities in
EWI was subject to the execution of a definitive subscription agreement, shareholders’ approval as well as the approval of the SC and other regulatory authorities in respect of the EWI’s proposed listing.
Liew, Liew Tian Xiong and Heah will be abstained from deliberating and voting on the proposed subscription at the relevant board meeting due to their interest in both companies.
It also said that an independent adviser would be appointed to advise the minority shareholders as to whether the proposed subscription was fair and reasonable.
Shares of EcoWorld fell 7.47% or 31 sen to RM3.84 amid bearish sentiment of the overall market.
For more information on Building and Construction event, please visit www.asiapacificevents.com
Liew is well known for his stint in SP Setia Bhd where it undertook the re-development of the Battersea Power Station in London where he is still playing a pivotal role.
However, Liew left SP Setia in April this year and most of the staff in the company are now with EcoWorld, formerly known as Focal Aims Holdings Bhd. However, EcoWorld is a relatively small company and its subscription for shares in a SPAC is a fast way for it to expand its wings outside Malaysia.
“Apart from income contribution towards the group, the investment in EWI has the potential of boosting sales in EW Bhd’s Malaysian projects, through its association with the EWI brand when it is established globally,” it noted.
EcoWorld said it would be able to gain exposure in the international real estate market without incurring much costs and resources so that it, stay could focused on its local businesses.
“As a listed entity in its own right, EWI would also be able to undertake a larger and more diversified pool of projects globally than EcoWorld would be able to do on its own,” it added.
With that, it announced to forgo the offer for the acquisition of the 1.18 acres in Sydney, Australia for
A$28mil (RM80.33mil) to develop over 300 units of apartments.
The developer also said expression of interest did not constitute an offer to subscribe for the securities in
EWI was subject to the execution of a definitive subscription agreement, shareholders’ approval as well as the approval of the SC and other regulatory authorities in respect of the EWI’s proposed listing.
Liew, Liew Tian Xiong and Heah will be abstained from deliberating and voting on the proposed subscription at the relevant board meeting due to their interest in both companies.
It also said that an independent adviser would be appointed to advise the minority shareholders as to whether the proposed subscription was fair and reasonable.
Shares of EcoWorld fell 7.47% or 31 sen to RM3.84 amid bearish sentiment of the overall market.
For more information on Building and Construction event, please visit www.asiapacificevents.com
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