The deal, when completed, would trigger a mandatory general offer (MGO) for KLK to buy out the remaining minority shareholders IJM Plantations.
KLK, in a separate filing today, said it intends to keep IJM Plantations listed on Bursa Malaysia.
The palm oil group made the offer on Wednesday, valuing IJM Plantations at RM2.73bil, or RM3.10 a share.
IJM Corp today said that it has decided to enter into a definitive sales and purchase agreement as the offer valued IJM Plantations at a premium compared with its historical traded prices, as well as against its peers.
"The Proposed Disposal is in line with the Group’s strategic objective of streamlining the Group’s businesses to focus on construction, property development, infrastructure concessions as well as manufacturing of building materials," IJM Corp said in a filing with Bursa Malaysia today.
It added that the strong CPO price environment and good showing by plantation companies have presented an opportune window of divestment.
"The Proposed Disposal presents the Company with a ready buyer for its entire stake in IJM Plantations which will enable it to immediately realise the value of its investment in IJM Plantations and accord the minority shareholders an avenue to monetise their investment in IJM Plantations as well," it said.