Proposed real estate merger raises spectre of financial bailout in corporate Malaysia

The deal will result in Eco World becoming a fully-owned subsidiary of UEM Sunrise and subsequently surrendering its listing status on Bursa Malaysia. PHOTO: ST FILE
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KUALA LUMPUR - 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 succumbing to pressure to bail out politically well-connected firms using public funds.

In a statement to the Malaysian stock exchange on Monday (Oct 5), Khazanah-controlled UEM Group said that it was proposing a share-swop transaction between its publicly listed property arm UEM Sunrise and Eco World.

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