KUALA LUMPUR (May 14): IGB Bhd shares rose on Monday after its 75%-owned KrisAssets Bhd said it would sell MidValley Megamall and The Gardens mall for RM4.6 billion to IGB REIT.

The transaction is to be satisfied by cash and units in the REIT.

At 11.23am, IGB added five sen to RM2.79 with 541,100 shares traded.

Shareholders of Krisassets will get cash and be able to participate in the listing of the REIT, which should create some excitement in the company.

AmResearch in a note Monday reaffirmed its Buy on IGB, with an unchanged fair value at RM3.50.

“Based on IGB’s 75%-stake, the company stands to get a handsome cash payoff of RM951 million or RM0.64/share. IGB rose by close to 20% after our upgrade in January, but has been hovering at RM2.75-RM2.80/share over the past two months given the weak sentiment in the market.

“We expect the stock to trade at a narrower discount – now at about 39% — given the good valuation given to its prime assets,” it said.

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