By Khairie Hisyam
Departing SP Setia president and chief executive officer Liew Kee Sin will emerge in Eco World Development Group Berhad next Tuesday as a director, said The Edge Financial Daily today quoting unnamed sources.
Liew Kee Sin
The news came as Liew is stepping down from SP Setia tomorrow, ending an 18-year affiliation in which he led the developer as it grew into arguably Malaysia’s forefront developer.
At press time Liew has not responded to KiniBiz attempts to contact him via phone and SMS while Eco World declined to comment.
Notably Liew’s son Tian Xiong is an executive director and major shareholder in Eco World, holding 35.05% directly following a reverse-takeover (RTO) exercise of the company which was formerly known as Focal Aims Holdings Berhad last September.
Tian Xiong, 23, acted in concert with Eco World Development Sdn Bhd (EWDSB) to offer RM230.7 million for 65% of then-Focal Aims and the company had previously announced to Bursa Malaysia that Liew senior and wife financed their son’s shares acquisition in the RTO.
However Tian Xiong’s direct stake of 35.05% will be reduced to 11.27% after corporate exercises announced last Friday, involving assets injection, shares and rights issue as well as a coming private placement, are fully done.
The exercises saw parent company EWDSB inject assets with some RM30 billion in gross development value (GDV) into the company, more than tripling Eco World’s land bank from 1,326 acres to 4,433 acres and boosting the group’s current GDV from RM13.49 billion to RM43.53 billion.
As part of the injection, EWDSB’s shareholders — Eco World Development Holdings Sdn Bhd (Eco World Holdings) and Sinarmas Harta, which own 50% each — will subscribe to 806.85 million new Eco World shares worth RM1.37 billion to partially fund the acquisition by Eco World.
As at end-March, the directors of EWDSB are non-executive chairman Abdul Rashid Abdul Manaf, non-executive deputy chairman Leong Kok Wah and executive director Liew Tian Xiong.
However the shares subscription is conditional upon relevant regulatory approvals including an exemption from the Securities Commission as Eco World Holdings would see its current 30% stake rise to 42.3% after the shares subscription, triggering a mandatory general offer (MGO).
“The Proposed MGO exemption will be sought from the SC and shareholders of Eco World as it is not the intention of Eco World Holdings to undertake a take-over offer for all the remaining Eco World shares not already held by Eco World Holdings and its persons acting in concert as a result of the proposed share subscription,” said Eco World in a regulatory filing.
At the noon bell today, Eco World dropped 25 sen to RM4.95, continuing a downtrend after closing yesterday 20 sen lower to RM5.20.
Rife speculation confirmed?
Should Liew surface in Eco World’s board next week, it would confirm months of speculation of his link to Eco World despite his repeated denial on the matter.
“I am not involved. It is my former directors (and not me),” said Liew to KiniBiz last September.
Following announcement of the assets injection exercise last Friday, research houses yesterday said Liew would likely end up at Eco World down the road.
“While there was no mention of Liew joining EcoWorld during the briefing (last Friday), we strongly believe that he will do so in the near future,” said Kenanga Research in a report yesterday.
Liew himself had made light of the question when asked by journalists previously, saying he would like to enjoy his retirement before deciding on his future direction.
“There is no offer letter and no employment yet. If I get the offer, I will decide later,” Liew told reporters on the sidelines of his last AGM as SP Setia chief executive officer last month. “I have to ask my wife first, she expects me to go on holiday with her.”
“Meanwhile, let me enjoy my retirement first. I am relieved now and there is no pressure,” added Liew.
However Liew is staying on as chairman of the Battersea Power Station redevelopment project in London, which is a 40:40:20 joint venture by SP Setia with Sime Darby and Employees Provident Fund.
“The board is thankful that (Liew) has agreed … to remain as chairman of Battersea Power Station Development Company Limited until September 2015 to help ensure the smooth and successful implementation of these internationally prominent projects,” said Zaki.
Notably Sime Darby president and group chief executive Mohd Bakke Salleh had previously expressed confidence that Liew would stay on at the Battersea project beyond September 2015, although he did not elaborate.
“Liew has publicly announced that he will stay on until September 2015, that is public knowledge,” said Mohd Bakke during a media briefing when presenting Sime Darby’s 2Q14 results last February. “And today I am confident that he will continue to be chairman beyond 2015.”
KiniBiz previously examined Eco World’s rapid emergence in a three-part series here.
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