Ekovest gets unanimous shareholders’ approval for proposed DUKE disposal, share split

TheEdge Thu, Jan 19, 2017 05:53pm - 7 years View Original

KUALA LUMPUR (Jan 19): Ekovest Bhd’s shareholders unanimously approved the proposed disposal of the 40% equity interest held in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) to the Employees Provident Fund Board (EPF) for a total cash consideration of RM1.13 billion and the proposed share split in the company during the Extraordinary General Meeting (EGM) held today.

The proposed share split involves the subdivision of every two existing ordinary shares of RM0.50 each into five ordinary shares of RM0.20 each in Ekovest while the proposed amendments to Ekovest’s memorandum of association will facilitate the implementation of the proposed share split.

With the disposal, a special dividend of 25 sen per share will be distributed to shareholders of Ekovest while the remainder will be used for repayment of borrowings, exit payment, working capital and expenses for the corporate exercise.

“The proposed disposal is in line with the company’s broad strategy to monetize its matured infrastructure assets to free up financial resources for the infrastructure division expansion and other core businesses, such as construction and property development,” the Group’s managing director, Datuk Seri Lim Keng Cheng said in a press conference.

Lim added that the long-term relationship with EPF established through this corporate exercise could be a platform to pursue collaborations on potential investments in the future.

Nuzen Corporation Sdn Bhd, a wholly-owned subsidiary of Ekovest, is the holding company of Kesturi, which is, in turn, the concession holder of Duta-Ulu Kelang Expressway (DUKE), a 34-kilometre highway comprising two phases with a concession period of 54 years.

The proposed share split will also result in an enlarged issued and paid-up share capital of Ekovest of a maximum RM488.8 million comprising a maximum of 2.44 billion subdivided shares.

“The proposed share split is expected to enhance the marketability and trading liquidity of the company’s ordinary shares, as a result of the increase in the number of ordinary shares in issue,” Lim said.

As of closing, Ekovest edged lower by 0.77% or two sen to RM2.58, giving it a market capitalization of RM2.22 billion.

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