KUALA LUMPUR, June 9 (Reuters) - Malaysian builder IJM Corporation Bhd has on Monday proposed to buy the shares in IJM Land it does not own for 1.98 billion ringgit ($619.43 million).
IJM Corp, which owns 64.15 percent of IJM Land, has offered to buy the remaining stake with 111 million ringgit in cash and 279.4 million new IJM Corp shares worth 1.87 billion ringgit, it said in an announcement to the stock exchange.
The proposal, which values IJM Land at 3.55 ringgit per share, will see IJM Land’s current shareholders holding 16.18 percent of IJM Corp if successful.
The privatization will provide IJM Corp “greater liberty” in the strategy of IJM Land, which would be able to undertake larger-scale projects by leveraging on the financial resources of the wider group.
IJM Corp also cited the poor liquidity in the trading of IJM Land shares, which have seen a daily trading volume of 0.06 percent of its issued and paid-up capital, compared to IJM Corp’s 0.21 percent.
The exercise will cut costs and make operations more efficient, said IJM Corp. It expects to complete the deal by the first quarter of next year.
$1 = 3.1965 Malaysian Ringgit Reporting By Al-Zaquan Amer Hamzah, editing by Louise Heavens