Lim-linked stocks cash in on Bandar Malaysia cheque handover

 

Lim Kang Hoo IWH

PETALING JAYA: Two counters linked to Tan Sri Lim Kang Hoo (pic) shot up in active afternoon trade yesterday, ahead of a Bandar Malaysia cheque presentation ceremony tonight.

Iskandar Waterfront City Bhd, in which Lim holds a 37.76% stake via his private vehicle Iskandar Waterfront Holdings Sdn Bhd (IWH), jumped 8.5 sen or 14.78% to 66 sen at yesterday’s close with a volume of 75.57 million units.

Word on the event also had a spillover effect on Lim’s other entity – Ekovest Bhd.

It rose 10.5 sen or 21% to close at 60.5 sen with 290.08 million shares traded.

The cheque presentation tonight is on the deposit payment of RM1.24bil and an RM500mil advancement to TRX City Sdn Bhd.

IWH-CREC Sdn Bhd is expected to pay the remaining 8% of the deposit.

Iskandar Waterfront Holdings executive vice-chairman Tan Sri Lim Kang Hoo (second from left) with Johor Mentri Besar Datuk Hasni Mohammad (right) looking at the development project during the memorandum of understanding between Danga Heights Development and MCC Singapore at a hotel here in Johor Baru on Sept 7. NUR AISYAH MAZALAN / The Star

The deadline to settle the upfront payment is today, the end of the four-and-a-half month extension granted by the Ministry of Finance Inc from April 30 due to the Covid-19 outbreak.

IWH-CREC has so far paid RM148.2mil or around 2% of the RM6.45bil net due for its 60% stake in Bandar Malaysia.

The Finance Ministry holds the remaining 40% through TRX City.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz told Parliament in a written reply in July that the balance of the sale proceeds will be received in stages up to 2023.

IWH-CREC is a joint venture between IWH and China Railway Engineering Corp (CREC) to be the master developer of the 486-acre Bandar Malaysia.

It is touted to be the single largest city development in the region with a gross development value of RM140bil.