No corporate merger proposal received so far, says IJM Corp

KUALA LUMPUR (April 26): IJM Corp Bhd has clarified that it has not received "any formal proposal or offer from any party expressing interest for a corporate merger” at this juncture.

In a bourse filing, the company said it constantly evaluates various proposals or initiatives, including those that it may receive from other parties, as part of its continuous efforts to enhance shareholder value.

“In accordance with good corporate governance practice, the company will disclose any relevant information to Bursa Malaysia and to our investors in a timely manner,” it added.

IJM Corp was responding to a news report in The Edge Malaysia weekly, over the weekend, that Iskandar Waterfront Holdings Sdn Bhd (IWH) — a 63:37 public-private partnership involving private equity firm Credence Resources Sdn Bhd and Kumpulan Prasarana Rakyat Johor Sdn Bhd — may be interested in a merger with IJM Corp.

Quoting several sources, The Edge wrote that other companies that could be interested in IJM Corp include Sunway Bhd and Malaysian Resources Corp Bhd (MRCB).

Citing sources close to IWH, which is 63.13%-owned by tycoon Tan Sri Lim Kang Hoo via his 97.98% stake in Credence Resources, the weekly reported that the company has reached out to IJM Corp with a preliminary proposal.

“IWH has reached out to IJM Corp with a preliminary proposal for a three-way merger between both groups’ construction, property, plantation and highway divisions,” said one of the sources.

For IWH, a merger with IJM Corp would be strategic for the future development of its ambitious Bandar Malaysia project, The Edge noted.

Previously, IJM Corp had proposed to merge its property arm IJM Land Bhd with MRCB in 2010.

IJM Corp’s shares closed five sen or 2.67% higher at RM1.92 today, valuing the company at RM6.99 billion. Some 4.97 million shares were traded. The counter has risen 15.7% from RM1.66 over the past year, and is up 60% from last year’s low of RM1.20 on Aug 28.

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