KUALA LUMPUR: Eco World International Bhd has clarified that a recent news report claiming that its three shareholders stand to receive a total of RM550 million is false.
The developer was referring to a report titled "'Eco World International declares bumper dividend; three shareholders stand to receive RM550 million" that appeared on Aug 25 in The Edge Malaysia's online CEO Morning Brief.
Eco World International said in a statement that the article contains various inaccurate statements and inferences concerning the sums to be received by individual shareholders of the company.
The first was that its largest shareholder, Datuk Leong Kok Wah, owns 728.73 million shares, or 30.3 per cent of the real estate developer through his direct holdings Eco World Capital (International) Sdn Bhd (EW Capital) and Sinarmas Harta Sdn Bhd, entitling him to RM240.48 million of the total dividend.
The article noted that Tan Sri Quek Leng Chan owns a 27 per cent shareholding, or 648 million shares through GLL EWI (HK) Ltd, a unit of Singapore-listed GuocoLand Ltd, giving rise to an entitlement of RM213.84 million from the total dividend payout of RM792 million.
Eco World International's announcement provided voluntary clarification regarding the first interim dividend of 33 sen per share, which will be paid to shareholders who directly own shares in EcoWorld International as of the entitlement date.
It said that as of July 31 this year, the direct shareholdings of the individuals and entities mentioned in the said article are as follows:
* Leong (0.08 per cent), with total cash to be received from dividend amounting to RM660,000; Sinarmas (3.28 per cent), with total cash to be received from dividend amounting to RM25.98 million;
* EW Capital (27 per cent), with total cash to be received from dividend amounting to RM213.84 million; and GLL EWI (27 per cent), with total cash to be received from dividend amounting to RM213.84 million.
Eco World International said this is assuming no change in the number of EcoWorld International shares directly held by these shareholders as of the entitlement date.
"The statement that Leong is entitled to some RM240.48 million of the total dividend is therefore incorrect," it said.
It noted that 27 per cent of the EcoWorld International shares attributed to Leong are owned by EW Capital, a wholly-owned subsidiary of Eco World Development Group Bhd (EcoWorld Malaysia).
"While Leong has a deemed interest in EcoWorld International via his substantial shareholding in EcoWorld Malaysia, he will not receive RM213.84 million of the dividend in his personal capacity.
"Instead, this will be paid to EW Capital as the direct shareholder owning the 27 per cent stake," the company said.
Similarly, Eco World International said the inference that Quek will be entitled to RM213.84 million from the total dividend payout of RM792 million is incorrect.
"Note that the dividend will be paid to GLL EWI. While Quek has a deemed interest in EcoWorld International via GuocoLand, he is not the sole shareholder of GuocoLand, which is publicly listed in Singapore.
"Hence, an inference that Quek is entitled to the entire sum of RM213.84 million is erroneous," the company said.