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IWH-IWCity merger collapse dents confidence
Khairul Khalid | 03 Nov 2017 00:30
Lim’s proposal includes Ekovest undertaking a voluntary takeover offer for all shares in IWCity

The aborted merger between Iskandar Waterfront City Bhd (IWCity) and Iskandar Waterfront Holdings Sdn Bhd (IWH), both vehicles of tycoon Tan Sri Lim Kang Hoo, has disappointed investors who had been anticipating the deal since last year.

Lim faces an uphill task in regaining investors’ confidence given the major setbacks in the Bandar Malaysia project in the last two years.

IWCity’s shares have plummeted by 56% since the government terminated the Bandar Malaysia agreement with an IWH-led consortium on May 3, when it was trading at RM3.08. It is presently trading at RM1.35.

An analyst says the aborted deal is not entirely surprising after IWH lost the RM150 bil Bandar Malaysia project earlier this year, which was critical to the viability of the proposed merger.