PETALING JAYA: Construction firm IJM Corp Bhd has bought 5.8 million shares for RM6.75mil in West Coast Expressway Sdn Bhd (WCE), the concession holder of the proposed West Coast Expressway.
The company said in a filing with the stock exchange that the shares, representing a 20% stake in WCE, was acquired from Prominent Xtreme Sdn Bhd, a dormant company.
“The acquisition was arrived at based on a willing-buyer, willing-seller basis after taking into consideration the audited net assets of WCE as at Jan 31, 2011,” it said, adding that the Government had approved the construction of the West Coast Expressway based on a build-operate-transfer contract with a concession period of 60 years.
Earlier reports had, citing sources, said the acquisition was believed to be in line with IJM Corp’s intention to inspire confidence in the West Coast Expressway project.
According to an earlier report in the Star, Prominent Xtreme’s directors were Liau Yoke Leang and Mohd Ruah Abdul Manan.
Liau was formerly the senior general manager of Agrocon Sdn Bhd, a smallish property development company, whose director and major shareholder was Chan Keat Wan, the sibling of Tan Sri Chan Ah Chye, major shareholder of Kumpulan Europlus Bhd (KEuro), which has an 80% stake in WCE.
IJM Corp has a a 22.72% equity interest in KEuro.
Prominent Xtreme had bought Perak Corp Bhd’s entire stake in WCE comprising 3.3 million shares or a 12.19% stake for RM4mil back in October 2010.