PETALING JAYA: The Federal Territories Umno Youth has urged the Perikatan Nasional government to stop the merger of UEM Sunrise and property developer Eco World Development Group Bhd.
Its chief, Mohamed Nizham Abdullah Hamdi, asked UEM Group why it was merging its subsidiary with EcoWorld.
While praising UEM for coming out in the open, it said it would like to know how many companies it had talked to and who these companies were.
“We want to know UEM’s justification in wanting to merge with EcoWorld. UEM has huge land banks and most of these land banks are concentrated in Bumiputera areas. Will these interests still be protected?” he asked in a statement today.
Nizham also questioned how the merger would benefit Khazanah and the finance ministry, claiming UEM Sunrise stood to lose more than EcoWorld in the merger.
“In our view, this merger is serving the same objective, as our assumptions last year, in bailing out EcoWorld. They are in a bad situation with so many projects not performing well. Now, they seem to be using the government to bail them out.
“We urge the government to put a stop to this. If there is a need for UEM Sunrise to merge, please do an open exercise and explore opportunities with more companies to bring more benefits to the country.”
It was reported today that UEM Sunrise, the property arm of Khazanah Nasional, had received a proposal from UEM Group for a merger with EcoWorld.
The announcement on Bursa Malaysia indicated that UEM Sunrise’s board of directors received the letter from UEM Group on Oct 2, proposing for the two companies to merge through an exchange of shares and warrants.
In the letter, UEM Group said it would expect a decision on the proposal by Oct 30 for further discussions on the merger to commence.