BUSINESS

IJM CORP'S SHARES UP ON DIVESTMENT NEWS

14/06/2021 10:20 AM

KUALA LUMPUR, June 14 -- IJM Corporation Bhd’s (IJM) shares on Bursa Malaysia were traded higher in the early session today, driven by the group’s move to dispose of its entire stake in IJM Plantations Bhd to Kuala Lumpur Kepong Bhd.

As at 9.58 am, the company’s shares rose 2.0 sen to RM1.95, with 1.05 million shares changing hands.

In a statement last Friday, the group said that the divestment is valued at RM1.53 billion, and IJM stands to gain RM700 million from the exercise.

Its chief executive officer and managing director Liew Hau Seng said the disposal would allow IJM to realise its value in IJM Plantations that has been underappreciated by the market, partly due to the illiquidity of the stock. 

“The proposed disposal will also enable the group to streamline its businesses to focus on construction, property development, infrastructure concessions and the manufacturing of building materials, all of which derive synergistic benefits with one another, thereby reducing the conglomerate discount currently ascribed to IJM’s market valuation,” he said.

-- BERNAMA

 

 


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