IJM Corp - Selling Kuantan Port for RM334 million cash

It is selling a 40% stake in wholly owned Kuantan Port to China based port operator Guangxi Beibu Gulf intl Port Group Co Ltd for rm334 million cash.

It remains a blue chip laggard and it is likely to dish out positive news in the coming months from Sept 2013.

IJM Corp follows the Malaysian government’s project sequencing move to strengthen the public sector’s financial position. Its tender book mix is however exposed to minimal risk from the project sequencing.

Expect positive progress on the WCE in 2HFY2013 beginning the targeted financial closure on 2013.

The completion of the partial divestment of IJM Corp’s stake in Kuantan Port will pave the way for rm3 billion worth of port extension work which will also be private sector driven.