Malaysia’s construction group IJM Corp accepts KLK’s offer for plantation biz

The KL Tower is seen, with a background of the cityscape in Kuala Lumpur, Malaysia.

Malaysian construction group IJM Corporation Bhd has accepted Kuala Lumpur Kepong Bhd’s (KLK) 1.53 billion ringgit ($372.63 million) cash offer for its entire stake in its palm oil plantation business, a stock exchange filing on Friday showed.

Plantation giant KLK proposed acquiring IJM Corp‘s 56.2% stake in IJM Plantations Bhd in a letter on Wednesday.

IJM Corp said it has decided to enter into a definitive share sale and purchase agreement with KLK.

It said the disposal enables it to immediately realise the value of its investment, considering the illiquidity of IJM Plantations shares.

It said it expects to record a pro forma gain of approximately 699.89 million ringgit.

The disposal is in line with its strategic objective of streamlining its businesses to focus on construction, property development, infrastructure concessions as well as manufacturing of building materials, it said.

“The recent strong (crude palm oil) price environment and good showing by plantation companies have presented an opportune window of divestment,” it said.

Palm oil prices have been rising steadily over the past year and hit a record high last month.

Upon execution of the agreement, KLK is obliged to extend a mandatory general offer to acquire the remaining IJM Plantations shares it does not already own.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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