IJM Corp shares down 0.41% on Edra takeover talk

PETALING JAYA: IJM Corp Bhd shares fell 0.41% to close at RM7.30 yesterday, on the first day of trading after news broke about it considering buying Edra Global Energy Bhd. Some 7.2 million shares were traded.
Over the weekend, a financial weekly reported that IJM Corp is considering buying Edra Global, the power assets owned by state investment arm 1Malaysia Development Bhd (1MDB).
Citing industry sources, the report said that IJM Corp has unofficially expressed interest in acquiring the power assets but will need the agreement of its board and institutional investors before proceeding.
Its institutional shareholders include the Employees Provident Fund (EPF), Skim Amanah Saham Bumiputera (AmanahRaya) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
The report also said that IJM Corp may be looking for a partner with financial muscle for the acquisition.
Earlier this year, the Finance Ministry appointed CIMB Investment Bank Bhd to find a buyer for Edra Global. The bank identified several buyers, including IJM Corp, but its services were later terminated as plans to sell Edra Global were cancelled.
1MDB is now working on the listing of Edra Global, as originally planned, but has yet to resubmit its initial public offering application to the Securities Commission Malaysia.