Govt must rethink UEM Sunrise-EcoWorld merger, says Raja Bahrin

Terengganu Amanah chief Raja Kamarul Bahrin says the sudden resignation of UEM-Sunrise CEO Anwar Syahrin Abdul Ajib took many by surprise.

(FMT) – A former deputy housing minister has added his voice to those opposing the proposed merger between UEM Sunrise Berhad and EcoWorld Development Group Berhad saying the deal raises many questions.

In a statement, Senator Raja Kamarul Bahrin said the sudden resignation of UEM Sunrise CEO, Anwar Syahrin Abdul Ajib yesterday, just days after reports of the proposed merger emerged, also took many by surprise.

“Why does UEM Sunrise, a subsidiary of Khazanah Nasional, need to save EcoWorld, a private entity?

“Many are of the view that this merger will be detrimental to UEM Sunrise and Khazanah, and benefit EcoWorld,” he said, calling for the government and its main investment arm to study the appropriateness of such a deal.

The Terengganu Amanah chief also voiced concern over reports that EcoWorld will ultimately control the merged entity.

Recently, Federal Territories Umno Youth urged the Perikatan Nasional (PN) government to stop the proposed merger.

It questioned how the merger would benefit Khazanah and the finance ministry, claiming UEM Sunrise stood to lose more than EcoWorld in the merger.

On Monday, UEM Sunrise received a letter of proposal from UEM Group Bhd for a merger with Eco World.

It was proposed the two companies would merge through an exchange of shares and warrants. Eco World will subsequently be delisted from Bursa Malaysia.