KUALA LUMPUR: IJM CORPORATION BHD [] is evaluating various options about the liquidity of the shares of its 62.5%-subsidiary IJM Land Bhd.
The company said it was only in May 2009 it had placed out shares to fulfill the shareholding spread requirements of IJM Land.
'There is no definite proposal at this juncture and the company will announce to Bursa Securities accordingly if there is a definitive proposal,' it said on Friday, Oct 8.
The Edge Financial Daily reported IJM Land looked ripe for possible privatisation, citing analysts.
RHB Research reported market talk on IJM Land being a target for privatisation by IJM Corp.
RHB opined that by privatising IJM Land, it might enable the parent to be the component stock of the benchmark FBM KLCI.
'We think the most possible reason for IJM Land to be taken private is the potential addition of IJM Corp into the benchmark index, the FBM KLCI top 30 stocks, following the inclusion of GAMUDA BHD [] this past September.
'Note that IJM Corp is currently one of the FBM Mid-70 stocks and in the reserve list for the FBM KLCI. The inclusion may benefit IJM Corp as it could lead to a re-rating going forward.'' While it is still premature to confirm the deal, we believe the privatisation angle is nevertheless a strong catalyst for IJM Land,' said RHB.
According to the research house, privatising IJM Land would increase its parent's market capitalisation to RM8.2 billion from RM7.1 billion.
The company said it was only in May 2009 it had placed out shares to fulfill the shareholding spread requirements of IJM Land.
'There is no definite proposal at this juncture and the company will announce to Bursa Securities accordingly if there is a definitive proposal,' it said on Friday, Oct 8.
The Edge Financial Daily reported IJM Land looked ripe for possible privatisation, citing analysts.
RHB Research reported market talk on IJM Land being a target for privatisation by IJM Corp.
RHB opined that by privatising IJM Land, it might enable the parent to be the component stock of the benchmark FBM KLCI.
'We think the most possible reason for IJM Land to be taken private is the potential addition of IJM Corp into the benchmark index, the FBM KLCI top 30 stocks, following the inclusion of GAMUDA BHD [] this past September.
'Note that IJM Corp is currently one of the FBM Mid-70 stocks and in the reserve list for the FBM KLCI. The inclusion may benefit IJM Corp as it could lead to a re-rating going forward.'' While it is still premature to confirm the deal, we believe the privatisation angle is nevertheless a strong catalyst for IJM Land,' said RHB.
According to the research house, privatising IJM Land would increase its parent's market capitalisation to RM8.2 billion from RM7.1 billion.
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