In a statement today, the diversified group said the proposed transaction fits with its strategic focus to streamline its construction-property-industry-infrastructure-related businesses.

“This would enable IJM to establish a more efficient business structure that will accord the company better value appreciation by the market, narrowing the conglomerate discount,” it said.

IJM chief executive officer/managing director Liew Hau Seng said IJMP had been a valued member of the group and its contributions to the group’s financial performance, particularly during periods of major economic downturns, was recognised.

“The decision to dispose of IJMP was a strategic one to streamline the group’s focus on its construction-property-industry-infrastructure business.

“With this change in ownership, we believe IJMP will also be well-positioned for long-term success,” he said.

Liew also said the proceeds from the disposal would be used to fund future growth opportunities that were consistent with the group’s past practice of “recycling” its mature assets while upholding its commitment to reward long-term shareholders.

The group said RM800 million from the proceeds was earmarked for capital management activities, which includes an indicative special dividend amounting to RM542 million, or 15 sen per share, as well as a share buyback programme.

IJM stepped up its share buyback programme and has bought back 54 million shares to date due to the undervaluation of its share price by the market.

The group noted that the declaring of the special cash dividend to shareholders is expected to coincide with the release of IJM’s second-quarter financial results in November 2021, adding that an immediate one-off gain from the disposal will be recognised for the period.

Meanwhile, in a filing with Bursa Malaysia today, IJM announced that its non-executive director Hamzah Hasan has retired from the position with immediate effect.