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KUALA LUMPUR (May 15): Shares in Iskandar Waterfront City Bhd (IWCity) gained as much as 39 sen or 23.8% to RM2.03 in afternoon trading after it was reported that the government may allow the IWH-CREC consortium back in Bandar Malaysia.
On May 3, TRX City Sdn Bhd, which is owned by the finance ministry, said the agreement signed in December 2015 with IWH-CREC had lapsed because the buyers "failed to meet the payment obligations".
IWH CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH), which is also the associate company of IWCity, and China Railway Engineering Corp (M) Sdn Bhd (CREC).
Businessman Tan Sri Lim Kang Hoo owns a 63% stake in IWH. The remaining 37% is held by Kumpulan Prasarana Rakyat Johor Sdn Bhd.
Last Friday, IWH-CREC has received the refund of RM741 million, which it had paid as deposit to acquire a 60% equity stake in Bandar Malaysia Sdn Bhd for RM7.41 billion.
The return of the deposit signalled the official termination of the stake sale.
However, Prime Minister Datuk Seri Najib Razak was reported to have said after meeting with China President Xi Jinping over the weekend that he was open to reconsidering IWH-CREC and also a change in the equity structure in Bandar Malaysia that could see more than one Chinese companies involved.
Dalian Wanda Group — China's largest property developer owned by the country's richest man Wang Jianlin — was also reported to have voiced its interest in participating in the Bandar Malaysia development during a joint press conference with Najib in Beijing. — theedgemarkets.com
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