Proposed real estate deal raises spectre of financial bailout in KL

Planned merger of UEM Sunrise, Eco World sparks talk that govt is using public funds to rescue firms

If the deal goes through, Eco World founder Liew Kee Sin will be reduced to a minority shareholder in the enlarged UEM Sunrise, the property arm of UEM Group, a wholly owned unit of Khazanah Nasional (above).
If the deal goes through, Eco World founder Liew Kee Sin will be reduced to a minority shareholder in the enlarged UEM Sunrise, the property arm of UEM Group, a wholly owned unit of Khazanah Nasional (above). PHOTO: THE STAR/ASIA NEWS NETWORK
If the deal goes through, Eco World founder Liew Kee Sin (above) will be reduced to a minority shareholder in the enlarged UEM Sunrise, the property arm of UEM Group, a wholly owned unit of Khazanah Nasional.
If the deal goes through, Eco World founder Liew Kee Sin (above) will be reduced to a minority shareholder in the enlarged UEM Sunrise, the property arm of UEM Group, a wholly owned unit of Khazanah Nasional. PHOTO: THE STAR/ASIA NEWS NETWORK
Leslie Lopez Regional Correspondent In Kuala Lumpur
Updated
Oct 13, 2020, 09:08 PM
Published
Oct 07, 2020, 05:00 AM
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A proposed takeover of one of Malaysia's top real estate companies, Eco World Development Group, through a controversial merger plan spearheaded by sovereign fund Khazanah Nasional is raising concerns that Prime Minister Muhyiddin Yassin's administration is bowing to pressure to bail out politically well-connected firms using public funds.

In a statement to the Malaysian stock exchange on Monday, Khazanah-controlled UEM Group said it was proposing a share swap transaction between its publicly listed property arm UEM Sunrise and Eco World.

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A version of this article appeared in the print edition of The Straits Times on October 07, 2020, with the headline Proposed real estate deal raises spectre of financial bailout in KL. Subscribe

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