KLK completes purchase of IJM's stake in IJM Plantations

KUALA LUMPUR (Bernama) -- Kuala Lumpur Kepong Bhd (KLK) had completed the acquisition of 56.2% stake in IJM Plantations Bhd for a total cash consideration of RM1.53 billion.

In a filing with Bursa Malaysia today, KLK said following the completion of the acquisition, it is now holding 498.16 million shares, representing 56.57% equity interest, in IJM Plantations which has brought the plantation company to become a subsidiary of KLK.

On July 28, IJM Plantations said it planned to use RM800 million of the proceeds for capital management activities, RM450 million for future investment opportunities and capital expenditure, RM19.6 million for general working capital and RM4 million for estimated expenses.

It added that the disposal consideration was determined on a willing-buyer willing-seller basis based on the price offered by KLK.

At the market close today, KLK’s share price was traded seven sen lower at RM20.8 with 458,000 shares transacted.