IJM CORP TO DISPOSE OF 56.20 PCT STAKE IN IJM PLANTATIONS FOR RM1.53 BLN
KUALA LUMPUR, July 28 -- IJM Corp Bhd is disposing of 494.86 million ordinary shares in IJM Plantations Bhd (IJMP), representing a 56.20 per cent equity stake, to Kuala Lumpur Kepong Bhd (KLK) for RM3.10 apiece or a total RM1.53 billion.
In a filing with Bursa Malaysia today, IJM said it plans to use RM800 million of the proceeds for capital management activities, RM450 million for future investment opportunities and capital expenditure, RM19.6 million for general working capital, and RM4 million for estimated expenses.
“The disposal consideration was determined on a willing-buyer willing-seller basis based on the price offered by KLK.
“The disposal is in line with the group’s strategic objective of streamlining its businesses to focus on construction, property development, infrastructure concessions as well as manufacturing of building materials and quarrying,” IJM said.
The conglomerate believes the disposal will strengthen its financial position and provide financial flexibility to pursue business opportunities, fund working capital and reward shareholders through capital management activities.
“It will also allow IJM to unlock the value of its investment in IJMP and accord the minority shareholders an avenue to monetise their investment in IJMP,” added the group.
-- BERNAMA
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