ECOWORLD MALAYSIA ACQUIRES REMAINING 40 PCT STAKE IN PPSB

KUALA LUMPUR, Feb 18 (Bernama) -- Eco World Development Group Bhd (EcoWorld Malaysia) has acquired the remaining 40 per cent stake in Paragon Pinnacle Sdn Bhd (PPSB) from Employees Provident Fund (EPF) subsidiary, Tanjung Wibawa Sdn Bhd (TWSB), for RM184.08 million.

PPSB, which is now wholly owned by EcoWorld Malaysia, is undertaking a mixed residential and commercial development known as Eco Grandeur as well as Eco Business Park V, both of which are located in Puncak Alam, Selangor.

In a filing with Bursa Malaysia today, EcoWorld Malaysia said the acquisition arose from the exercise of a put option by TWSB in accordance with the terms of a subscription and shareholders’ agreement (SSA) signed between EcoWorld Malaysia and EPF in 2016.

On Nov 15, 2016, EcoWorld Malaysia and the provident fund inked the SSA to participate in PPSB to jointly undertake the projects. The EPF subsequently nominated TWSB to be the shareholder of PPSB and a party to the SSA in its place.

TWSB was granted a put option at the time of its subscription into PPSB in 2016, and this can be exercised after the expiry of eight years from the date of PPSB’s first utilisation of the shareholders’ advances from TWSB.

EcoWorld Malaysia said it is optimistic that the acquisition will contribute positively to the group’s future earnings and augur well for its prospects for the remaining landbank in PPSB.

As at Oct 31, 2024, undeveloped landbank at Eco Grandeur and Eco Business Park V stood at 310.4 hectares and 111.3 hectares respectively, with a combined remaining gross development value of about RM9.5 billion, the developer said.

Collectively, Eco Grandeur and Eco Business Park V have recorded cumulative sales of RM4.4 billion.

-- BERNAMA