MTD Capital Bhd does not intend revise to above RM4.50 per share the price at which it has offered to buy from Tronoh Mines Malaysia Bhd 87.4 million shares or 20.46% of the entire issued and paid-up capital of IJM Corp Bhd.
In a statement to Bursa Malaysia yesterday, MTD Capital said this was because its offer price of RM4.50:
Tronoh bought its stake in construction-based IJM Corp two years ago from IGB Corp for RM4.95 per share to become the construction arm of Malaysia Mining Corp Bhd (MMC). IJM Corp contributed RM9.26mil to Tronoh's pre-tax profit for the fourth quarter ended Jan 31.
MTD Capital said it had not received any reply from Tronoh regarding its offer. In a short statement to Bursa Malaysia on Wednesday, Tronoh had said, without citing reasons, that it was not accepting MTD Capital's offer.
“The company always strives to enhance value of shareholders and hence, making a cash offer of above RM4.50 per share is, in our opinion, not consistent with the company's policy in enhancement of shareholders' value,'' MTD Capital said in its statement.
It added that the offer would be null and void and of no further effect whatsoever if Tronoh did not reply within 14 days from the date of letter of offer, that is, May 25.
“We feel there is more value in the company,'' IJM Corp CEO Datuk Krishnan Tan had told StarBiz on Thursday in reference to MTD Capital's offer price.
Last week, MMC group CEO Datuk Ismail Shahudin said Tronoh would prefer to increase, rather than sell, its stake in IJM Corp.
Describing this as a transition period, Tan agreed that the construction industry was likely to undergo a consolidation in view of the high number of players in the industry that could face leaner times ahead.
IJM Corp shares closed at RM4.54 yesterday.
Analysts estimated Tronoh's total investment cost in IJM Corp at about RM426mil, after it exercised all its IJM Corp warrants, compared with the RM393.5mil offered by MTD Capital last week.
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