KUALA LUMPUR: Shares of IJM Corp and IJM Land fell the most in late morning trade on Friday, Dec 30, ahead of the merger with MALAYSIAN RESOURCES CORP [] Bhd (MRCB) as investors took profit after the recent run-up in the share price of IJM Land.
IJM Land had on Dec 15 announced the validity of the memorandum of understanding (MoU) for the merger was extended to Dec 29 as both parties are still in the midst of finalizing the terms and conditions of the definitive merger agreement for the proposed merger.
At 11.44am,'' IJM-WC was down 40 sen to RM2.63 while IJM Land fell 39 sen to R M2.85 with 18.07 million shares done.
IJM fell 30 sen to RM6.20 with 2.45 million shares done while IJM Land-WA lost 28 sen to RM1.61 with 40 million units done.
The FBM KLCI fell 0.96 of a point to 1,523.38. Turnover was 503.38 million shares done valued at RM591.22 million. There were 251 gainers, 349 losers and 281 stocks unchanged.
IJM Land and MRCB had said the extension for the validity of the MoU was because "both parties are still in the midst of finalizing the terms and conditions of the definitive merger agreement for the proposed merger".
To recap, The Edge FinancialDaily reported the merger between MRCB and IJM Land was expected to create the country's second-largest property company with a market capitalisation of over RM7 billion and landbank of more than 9,000 acres.
The newly merged entity (newco) is expected to be listed after the second quarter of next year.
In the proposed merger, shareholders of both companies will exchange their shares for shares in the newco. Shareholders of MRCB and IJM Land will be offered a non-binding offer price for their shares at RM2.30 and RM3.65, respectively, which are at premiums of 15.6% and 18.1%, respectively, over their last traded prices last Friday.
The offer valued IJM Land at a price-to-book ratio of 2.43 times and MRCB at 2.61 times, based on their latest reported results as at Sept 30.
The newco is also expected to have combined revenues of over RM2 billion and an asset base in excess of RM3 billion.
The Employees Provident Fund (EPF) is a common shareholder in all the companies involved in the merger. The EPF owns a 19.4% equity stake in IJM Corp, while it is the single largest shareholder of MRCB with a 41.63% stake. IJM Land is in turn a 62.48%-owned unit of IJM Corp Bhd.
The property development activities of MRCB are mainly concentrated in KL Sentral, although it has a 4,000-acre township in Perak.
IJM Land's strength is in township developments with projects focused in the Klang Valley, Penang, Johor, Negri Sembilan, Sabah and Sarawak. It also has projects in Vietnam and China, and a total landbank of over 5,000 acres.
The merged company is also widely expected to gain from the development of the 3,300 acres of Rubber Research Institute (RRI) land in Sungai Buloh, which was awarded to the EPF.
IJM Land had on Dec 15 announced the validity of the memorandum of understanding (MoU) for the merger was extended to Dec 29 as both parties are still in the midst of finalizing the terms and conditions of the definitive merger agreement for the proposed merger.
At 11.44am,'' IJM-WC was down 40 sen to RM2.63 while IJM Land fell 39 sen to R M2.85 with 18.07 million shares done.
IJM fell 30 sen to RM6.20 with 2.45 million shares done while IJM Land-WA lost 28 sen to RM1.61 with 40 million units done.
The FBM KLCI fell 0.96 of a point to 1,523.38. Turnover was 503.38 million shares done valued at RM591.22 million. There were 251 gainers, 349 losers and 281 stocks unchanged.
IJM Land and MRCB had said the extension for the validity of the MoU was because "both parties are still in the midst of finalizing the terms and conditions of the definitive merger agreement for the proposed merger".
To recap, The Edge FinancialDaily reported the merger between MRCB and IJM Land was expected to create the country's second-largest property company with a market capitalisation of over RM7 billion and landbank of more than 9,000 acres.
The newly merged entity (newco) is expected to be listed after the second quarter of next year.
In the proposed merger, shareholders of both companies will exchange their shares for shares in the newco. Shareholders of MRCB and IJM Land will be offered a non-binding offer price for their shares at RM2.30 and RM3.65, respectively, which are at premiums of 15.6% and 18.1%, respectively, over their last traded prices last Friday.
The offer valued IJM Land at a price-to-book ratio of 2.43 times and MRCB at 2.61 times, based on their latest reported results as at Sept 30.
The newco is also expected to have combined revenues of over RM2 billion and an asset base in excess of RM3 billion.
The Employees Provident Fund (EPF) is a common shareholder in all the companies involved in the merger. The EPF owns a 19.4% equity stake in IJM Corp, while it is the single largest shareholder of MRCB with a 41.63% stake. IJM Land is in turn a 62.48%-owned unit of IJM Corp Bhd.
The property development activities of MRCB are mainly concentrated in KL Sentral, although it has a 4,000-acre township in Perak.
IJM Land's strength is in township developments with projects focused in the Klang Valley, Penang, Johor, Negri Sembilan, Sabah and Sarawak. It also has projects in Vietnam and China, and a total landbank of over 5,000 acres.
The merged company is also widely expected to gain from the development of the 3,300 acres of Rubber Research Institute (RRI) land in Sungai Buloh, which was awarded to the EPF.
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