KUALA LUMPUR: Iskandar Waterfront City Bhd and Ekovest Bhd, which are controlled by Tan Sri Lim Kang Hoo, have issued separate statements to Bursa Malaysia clarifying they are not involved in the revived Bandar Malaysia project.
The statements came after shares in the two companies jumped to their maximum allowable daily limit, today.
Shares in Ekovest surged 30 sen, or 45 per cent to close at 97 sen while IWCity rose 30 sen or 29 per cent to close at RM1.32.
Both companies told Bursa Malaysia today that they were not aware of the reason behind the recent surge in their share prices. They advise investors to exercise caution in the trading of their shares.
"Save for the press release issued by the Prime Minister's Office on April 19 titled 'Government to Restate Bandar Malaysia Project' in which the name of our sister company, IWH-CREC Sdn Bhd was mentioned, we wish to clarify that IWCity is not involved in the reinstatement of the Bandar Malaysia project," IWCity said.
Ekovest also confirmed that it is not involved in the revived project.
Last Friday, the government announced it would reinstate the Bandar Malaysia project that was terminated by the previous administration in May 2017.
The revised RM140 billion development project will be awarded to the original consortium of Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp Sdn Bhd (IWH-CREC).
The consortium has to make an advance payment of RM500 million in addition to the original deposit sum of RM741 million within 60 days from the date the project was reinstated.
The consortium will take up a 60 per cent stake in Bandar Malaysia Sdn Bhd, with the government holding the remaining 40 per cent stake.