UEM GROUP PROPOSES EXPLORATORY MERGER TALKS BETWEEN UEM SUNRISE AND ECO WORLD
KUALA LUMPUR, 5 OCTOBER 2020 – UEM Group Berhad (UEM Group, a 100% subsidiary of Khazanah Nasional Berhad) had in the evening of 2 October 2020 submitted a letter to the respective Boards of UEM Sunrise Berhad (UEM Sunrise) and Eco World Development Group Berhad (Eco World) proposing for each entity to consider and deliberate on a potential merger between the two companies.
The proposed merger is expected to create one of Malaysia’s largest property companies, a best-in-class multi-product developer with strong capabilities in every segment of the industry to sustain long term value creation and growth.
Against a backdrop of subdued macro-economic conditions which has been further disrupted by the Covid-19 pandemic, there is a pressing need for local property developers to improve the robustness of their businesses by pooling resources and capabilities to strengthen their performance and long-term sustainability.
UEM Group explored the possibility of a merger between UEM Sunrise, in which it owns a 66.1% equity stake, and other property developers but believes the merits are stronger with Eco World. A merger with a suitable partner with the right capabilities will help enhance UEM Sunrise’s value through synergistic geographical and product mix improvements. The merger is also an opportunity for an existing Government-Linked Company to be in partnership with the private sector to create one of the largest property developers in Malaysia, with a projected Gross Development Value (GDV) of RM173.2 billion and a total landbank of more than 17,000 acres locally. UEM Group believes that industry consolidation will create value for all shareholders.
The Board of the two respective companies will independently consider the merits of the proposal and decide on whether to pursue further discussions. If all parties agree to the proposed merger:
▪ It will result in an enlarged UEM Sunrise. New shares and warrants will be issued in exchange for shares and warrants of Eco World. The enlarged UEM Sunrise will retain the listing status on Bursa Malaysia.
▪ UEM Group will remain the single largest shareholder of the enlarged UEM Sunrise with 43.0% equity stake, while the substantial shareholders of Eco World will hold a 24.2% equity stake. Government-Linked Investment Companies (including that of UEM Group) would hold a collective stake of more than 50.0%.
▪ The Board of Directors and senior management of the enlarged UEM Sunrise will be led by a Chairman who is an existing board member of UEM Sunrise. An Integration Committee will be set-up comprising representatives from both UEM Sunrise and Eco World and co-chaired by respective Chairmen, to discuss integration related matters, including composition of the Boards as well as key management team.
The proposed merger remains subject to deliberation by the Boards of the respective companies and until such time where they have indicated willingness to pursue further, there is no certainty that the proposed merger will result in any binding agreement or obligations among the two companies. Should they eventually agree to enter into any agreements, the eventual transaction would be subject to, amongst others, the approvals by shareholders and regulatory bodies.
(PLUS) HIGHWAY CUSTOMERS STRONGLY REMINDED TO FOLLOW SAFETY SOP’S AT R&Rs & TOLL PLAZAS AS COVID-19 CASES RISES
PLUS Malaysia Berhad (PLUS) highway customers are reminded to strictly follow the Standard Operating Procedure (SOP) set by the National Security Council (NSC) and the Ministry of Health (MOH) of wearing facemasks in public and adhere to the 1-meter physical distancing when congregating at the R&R’s, lay-by’s as well as interacting with PLUS Customer Service Assistants (CSA) at the toll lanes.
This reminder comes in light of the deeply concerning increase of Covid-19 cases in States where PLUS highway network operates.
“We urge our highway customers to please follow the established SOPs set by the Government. In the spirit of “Kita Jaga Kita”, the onus is on us to take good care of each other every step of the way. Every single PLUS employee, from our CSA, PLUSRonda Officer to Toll supervisors are fully compliant to the SOP’s of facemasking in public and maintaining a safe 1-meter physical distance when interacting with you our customer, we ask the same of you. Please reciprocate by doing the same when we serve you on the highway,” implored Datuk Azman Ismail, Managing Director of PLUS.
Under the new normal practise by many organisations that manages premises, which are open to public, customers are denied entry/transactions if face masks are not worn. PLUS is also adopting the same.
PLUS attests that it is extremely crucial comply to the SOPs in ensuring the safety of our customers, our front liners and everyone who enters the highway in line with the Government’s directive, in this pandemic to #KitaJagaKita.
Our customers are assured that in the event of a breakdown, every PLUSRonda personnel are required to wear face masks and practise 1-metre physical distancing when attending to highway emergencies. From compulsory body temperature checks at each R&R and contact tracing via MySejahtera, PLUS prioritises food hygiene as well as the cleanliness at all the R&R premises as well as Lay-bys and Toll Plazas via regular routine cleaning and periodical sanitisation.
With 1.5 million vehicles plying the PLUS highways each day and it is more crucial today with the spike in Covid-19 cases to be more vigilant. PLUS will continuously monitor public places within the highway fence line ie. R&Rs and toll plazas for the safety and comfort of its employees, customers and business partners.