ICP/IJM ... Sept 2008

ICP, the country’s largest pre-tensioned spun concrete piles (PSC piles) manufacturer, deserved a higher valuation than the RM3.30 per share offered by IJM Corporation Bhd in the former’s privatisation exercise, given ICP’s promising earnings prospects.

IJM offered to acquire the remaining 36.56% comprising 134.39 million shares of 50 sen each in ICP on the basis of one ICP share for 26 sen cash and the issuance of 0.6 IJM share of RM1 each. This works out to a consideration of RM3.296 per ICP share.

Pursuant to its notice of voluntary general offer, IJM did not intend to retain ICP’s listing status. It said the further consolidation of ICP, with the intention of making it a wholly owned subsidiary, would enhance the group’s balance sheet, earnings and future cash flow.