KUALA LUMPUR (Dec 14): Eco World Development Group Bhd shares will be suspended from trading tomorrow, pending a material announcement by Eco World International Bhd (EWI).

In a filing with Bursa Malaysia, Eco World Development said all its structured warrants will be suspended at the same time.

Eco World Development said the announcement is related to the heads of agreement (HoA) entered into by EWI on Nov 8 with UK construction firm Willmott Dixon, to jointly develop 12 sites in Greater London and the South East of England.

Under the HoA, EWI intends to acquire 70% equity interest in 11 project sites, which collectively has a capacity of 6,700 residential units with a potential gross development value (GDV) of at least £2.5 billion (RM13.86 billion) — over 5.54 times the developer’s market capitalisation of RM2.5 billion.

There is also a framework agreement in place for the development of a further 1,500 units on the 12th site for which the GDV is too early to determine.

Combined, EWI said the agreements could increase EWI’s UK presence fourfold. EWI currently has an ongoing development of 2,500 high-end residential units in Prime Central London under another joint venture with another developer, Ballymore Group.

Eco World Development’s share price fell one sen or 0.67% to close at RM1.48 today, giving it a market capitalisation of RM4.33 billion.

EWI, meanwhile, settled one sen or 1% higher at RM1.01, valuing the group at RM2.42 billion.