Recall that 2 years ago, when IWC announced they will acquire IWH and Bandar Malaysia will be injected into IWC, shareholders were questioning the rationale and in the first place, does IWC have the power to raise funds to support such a huge project? This deemed RTO of IWH is questionable as IWH was not generating much profit that period
IWC subsequently cancelled this transaction, as the deal had been hijacked by Rosmah by pulling in Malton and Tan Sri Desmond as the back up. It subsequently failed as well as China was questioning the rationale of Wanda and why CREC is forced to back out from this deal.
https://www.freemalaysiatoday.com/category/nation/2017/05/04/dispute-arises-as-bandar-malaysia-deal-collapses/
IWH CREC said in a statement last night: “IWH CREC is concerned with the content of the termination notice and the subsequent press release issued by TRX City, which, given the factual matrix, does not fully and accurately reflect the circumstances and conduct of the parties in this matter.
“IWH CREC takes this matter very seriously and is at present reviewing the content of the termination notice and press release with its advisers and legal counsel.”
After Najib upset the government of China as Rosmah was eyeing for this fat juicy piece of project, this project was basically stopped even though they said MOF was looking for new master developer! And what happened? Nothing..
Since then, Lim Kang Hoo aka botak has gone to a new horse, supporting Dr M, and with that he also showed his loyalty by buying the loaf owned by our prime minister. With our prime minister looking out to China again to continue ECRL, why would the Chinese be willing to cut costs and give more local participation to Malaysia's contractors? Could it be that the revival of Bandar Malaysia, is part of this deal? Note that this project thas made the Chinese angry because of Najib &Rosmah, and now there is a chance of them participating it again? Perfect story
Why EKOVEST?
(1) IWC has insufficient funds and lack of earnings to support such a big project
(2) IWC has failed before when they tried to acquire IWH
(3) Ekovest has 304mil warrants that will expire by 25 June 2019, almost 65 days from now. Assuming full exercise, Ekovest could raise RM150m for the company, and it can used to pay back IWH later.
(4) IWH-CREC has to pay additional RM500m, and IWH owns 60% of it. Therefore, RM300m is needed. IWH could take a bridging loan and repaid by Ekovest in the future.
(5) Ekovest's intention is to go into property. They have specifically mentioned that Ekovest intent to venture into property when they proposed to acquire IWC 2 years ago.
https://themalaysianreserve.com/2017/12/04/ekovest-iwc-merger-provide-long-term-value-shareholders/
Then why deny Ekovest and IWC is not involved in Bandar Malaysia? Obviously they are not involved for now, because botak will only be negotiating with China this week! Has not even done deal, it is IWH the jewel that will be involved. Question is, botak has only 2 listing companies to raise funds in the future, and what does it tells you? Definitely have to raise funds lah!
Any sell down tomorrow is a ticket to a new Gamuda. Remember, Gamuda once hit a capitalisation of RM15b market cap, and Ekovest is just RM2b now, even with a share swap of IWH and Ekovest , Ekovest's future is too bright to be true. And what about IWC? It will be injected after IWH is injected into Ekovest. Thats my take. Stay calm and buy Ekovest when it dips below RM0.80 (if there is) and it wont be long.
Goodluck
https://klse.i3investor.com/blogs/baggerhunter/203446.jsp
