Ekovest up, but IWCity down sharply after shareholders reject takeover plan

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KUALA LUMPUR (March 29): Ekovest Bhd's share price climbed four sen or 4.12% to RM1.01 when trading resumed this afternoon on news that the company's shareholders rejected the group's proposed takeover of Iskandar Waterfront City Bhd (IWCity) at the extraordinary general meeting this morning.

However, shares in IWCity dropped as much as 18 sen or 13.95% to an intraday low of RM1.11 when trading resumed. The counter has since pared losses to trade down 15 sen or 11.63% at RM1.14, marking a one-year low.

Some 40.9 million Ekovest shares were traded as of 3.15pm, making it the third most actively traded counter today.

Earlier today, Ekovest failed to get its shareholders' approval for its proposed takeover of IWCity at RM1.50 a share. According to the company, 69.2% of its shareholders had voted against the proposal, while 30.8% voted for it.

Last year, the construction, infrastructure and property company had proposed to pay RM1.50 cash for one IWCity share or undertake a share exchange on the basis of one new Ekovest share for one IWCity share.

At a press conference today, Ekovest managing director Tan Sri Lim Keng Cheng said the group respects its shareholders' decision and does not plan to make another offer for IWCity.

"Some shareholders said that they prefer Ekovest to focus on its existing infrastructure and construction business rather than venturing (further) into the property sector," Lim told reporters.

He added that Ekovest's valuation is higher than IWCity's, hence, the takeover offer was deemed unattractive under a one-for-one share swap.