Malaysia’s largest asset manager, Permodalan Nasional Bhd (PNB), will not accept Sunway’s voluntary takeover offer for its 13.5% stake in construction firm IJM Corp, according to a statement on Monday.
In a statement emailed to Reuters, PNB said its board investment committee rejected the offer after an independent evaluation, based on commercial considerations and its fiduciary duty to unitholders.
PNB said it took into account IJM‘s intrinsic value relative to the offer price, the limited cash component, potential upside in shares to be issued, and IJM‘s dividend outlook.
“PNB’s decision was made purely based on our own strategic considerations as a long‑term institutional investor,” it said. State news agency Bernama first reported the matter on Monday.
On January 12, Malaysian conglomerate Sunway proposed a conditional voluntary takeover offer for all IJM shares in a deal valued at about 11 billion ringgit ($2.80 billion).
Last week, IJM said its independent adviser had concluded the offer was not fair or reasonable and recommended shareholders reject it.
Reuters
