KUALA LUMPUR, June 11 (Reuters) - 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
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.
($1 = 4.1060 ringgit)
(Reporting by Liz Lee; editing by Jason Neely)