Ekovest extends unit merger talks with Knusford for six more months

• Both Ekovest and Knusford said the extension is from Jan 28 to July 27, 2025, marking the third extension since Ekovest initially entered into a binding heads of agreement in October 2023.

KUALA LUMPUR (Jan 27): Ekovest Bhd (KL:EKOVEST) and Knusford Bhd (KL:KNUSFOR) have agreed to have another six months to discuss a merger deal worth RM450 million.

Under the proposal, Ekovest will dispose of its entire stake in Ekovest Construction Sdn Bhd (ECSB) to Knusford for RM450 million. Knusford will finance the purchase via the issuance of new shares at 60 sen per share.

In separate filings with Bursa Malaysia on Monday, both Ekovest and Knusford said the extension is from Jan 28 to July 27, 2025, marking the third extension since Ekovest initially entered into a binding heads of agreement in October 2023.

Ekovest explained that the latest extension would allow both parties to further assess, evaluate, and negotiate the detailed terms of the merger.

The first extension was from May 28, 2024, to July 27, 2024, followed by a second extension from July 28, 2024 to Jan 27, 2025, according to previous filings.

Tan Sri Lim Kang Hoo is a major shareholder of both Ekovest and Knusford, with a 28.01% stake in Ekovest and a 33.15% stake in Knusford.

Lim is also the executive chairman of Ekovest, while his son Lim Chen Herng is an executive director of Knusford.

Ekovest’s share price closed unchanged at 33.5 sen on Monday, valuing the group at RM993.4 million. Knusford was last traded at 68 sen, translating into a market capitalisation of RM67.8 million.

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