This article first appeared in The Edge Financial Daily on September 24, 2019

KUALA LUMPUR: UEM Sunrise Bhd has said it continuously explores strategic business opportunities that can deliver stakeholder and shareholder returns.

UEM Sunrise was responding to a New Straits Times report published last Friday, quoting sources, that it may acquire smaller rival Eco World Development Group Bhd (EcoWorld) in a share swap deal.

“We wish to clarify that the board of directors has not made nor received any corporate proposal as reported in the media from any party for its consideration,” UEM Sunrise said in a filing with Bursa Malaysia yesterday.

It added that where necessary, the company will release a proper announcement on any material issue on a timely basis as required by Bursa’s Main Market listing requirements.

UEM Sunrise’s net profit for the first half of financial year 2019 was RM70.46 million, down 70.5% year-on-year (y-o-y) due to the absence of contribution from land sales during the quarter under review. Its revenue was 64.9% y-o-y higher at RM1.42 billion.

EcoWorld’s net profit for the nine months ended July 31, 2019 (9MFY19) was RM121.97 million, a 25.7% y-o-y increase. Its revenue grew 2.1% y-o-y to RM1.56 billion.

Its 9MFY19 earnings were largely contributed by: Eco Majestic, Eco Forest, Eco Sanctuary and Eco Sky in the Klang Valley; Eco Botanic, Eco Spring, Eco Summer, Eco Business Park I, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia; and Eco Meadows and Eco Terraces in Penang.

UEM Sunrise shares closed down 0.5 sen or 0.69% at 71.5 sen yesterday, with a market capitalisation of RM3.24 billion. EcoWorld shares ended the day up 0.5 sen or 0.75% at 67 sen, with a market capitalisation of RM1.97 billion.