<article>KLK sells 20% in KLK Premier Capital</article>

KLK sells 20% in KLK Premier Capital
Oil palm plantation group <a href="http://www.klk.com.my/" target="_blank">Kuala Lumpur Kepong Bhd (KLK)</a> is disposing a 20 per cent stake in KLK Premier Capital Ltd to long-term business partner to <a href="http://www.mitsui.com/jp/" target="_blank">Mitsui &amp; Co Ltd</a> for MYR 154 million ($44 million).
The group sold the stake in its unit to leverage on Mitsui’s business relationships in China and technological expertise in downstream oleochemical manufacturing.
Mitsui will buy 2.362 million ordinary shares and 84,500 redeemable preference shares for $44 million, under the a share purchase agreement.
The proposed disposal is conditional upon the injection of $50.3 million by KLK into its unit Taiko Palm-Oleo (Zhangjiagang) Co Ltd, which is involved in manufacturing and trading of fatty acids, glycerine, soap, noodles and triacetin.
The injection would enable the unit to fund the expansion of its plant capacity and product range.
KLK ended the day’s trade up MYR22.80, MYR1 or 4.59 percent higher with 148,800 shares exchanged hands.
IJM Corp to privatise IJM Land
<a href="http://www.ijm.com/web/" target="_blank">IJM Corp Bhd </a>has received “unanimous” approval from it shareholders to privatise its property development unit <a href="http://www.ijmland.com/" target="_blank">IJM Land Bhd </a>at an extraordinary general meeting (EGM) held today.
With the approval, IJM Corp will own the entire shareholding in IJM Land for a total considerations of MYR 1.98 billion, comprising the issuance of 280 million consideration shares amounting to MYR1.86 billion and cash consideration of about MYR120 million.
Post-privatisation, CEO and managing director Teh Kian Ming will be able to take on larger scale projects, while leveraging on IJM Corp’s financial strength and resources.
“We already have the landbank, now we want to work on a larger scale in terms of capacity and financial strength,” he said at a press conference after the EGM.
IJM Land currently has 4,900 acres of undeveloped landbank, with a gross development value of MYR30 billion.
IJM Land CEO and managing director Soam Heng Choon said the company is looking into property investments as its new business segment, leveraging on the stronger financial position post this exercise.
The property investment business, Soam said, would not take a real estate investment trust (REIT) structure but rather the company will invest in its own assets.
IJM Corp closed the day’s trading unchanged at MYR6.59, on a trading volume of 8.8 million shares. IJM Land ended the day at MYR3.38, 2.42 percent or 8 sen higher, with 3.98 million shares traded hands.

Malaysia deals roundup: KLK, IJM

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