In a statement this evening, IJM said the voluntary takeover offer (VTO) by Sunway must be assessed in its proper “strategic context”.
IJM said it is currently at a different stage of its investment cycle, with key assets such as infrastructure concessions moving from development into operational phases.
Comparisons based only on current margins or short-term earnings do not fully reflect their value or future upside, it said.
“Shareholders are therefore advised to assess the Sunway offer on the basis of the independent advice circular, the company’s official announcements and IJM’s underlying value, strategic position and future prospects.”
On Jan 12, Sunway made a conditional VTO for all 3.51 billion shares in IJM at RM3.15 per share, with an acceptance deadline of April 6.
Last month, Permodalan Nasional Bhd (PNB), IJM’s second-largest shareholder, decided not to accept Sunway’s offer for its 13.5% stake in the conglomerate.
The offer is conditional on Sunway receiving acceptances of more than 50% of IJM’s voting shares by the closing date.
However, Sunway requires 90% shareholder approval to compulsorily delist IJM and take it private – a threshold unattainable with PNB rejecting the deal.
IJM is essentially owned by various institutional funds, with its biggest shareholder being EPF, which holds a 16.8% stake.
On a related matter, IJM said it had not discussed the proposed takeover with any of its stakeholders, contrary to claims by Sunway founder and chairman Jeffrey Cheah.
Cheah was reported by the New Straits Times as saying yesterday that initial discussions with these stakeholders had been “encouraging”, with feedback from government-linked investment companies “broadly positive, with many acknowledging the commercial rationale behind the deal”.
“The company wishes to emphasise that any discussions Sunway may have had with any shareholder prior to the announcement of the VTO were conducted without the knowledge or involvement of the IJM board or its management,” IJM said.
It also clarified that no offer was tabled to IJM on Jan 9, as reported by the New Straits Times.
IJM said that a lunch meeting between representatives of Sunway and IJM’s chairman and group CEO took place on Jan 12. At this meeting, they were informed that a notice of VTO would be served to IJM that afternoon.
“No discussion on the substance of the proposal took place at that meeting as the VTO would be made directly to IJM shareholders,” IJM said, adding that it received a notice of VTO at around 4pm that very day.