IJM's proposed purchase of Pestech stake poses near-term risks

KUALA LUMPUR: IJM Corp Bhd's proposed entry into Pestech Bhd as a strategic shareholder could pose some risks as Pestech as been posting operating losses for four consecutive quarters.

Hong Leong Investment Bank (HLIB) Research said that while the acquisition price of the stake is relatively cheap based on Pestech's historical financial norms, IJM will have to be able to revive the company's prospects.