If IJM/MRCB merger fails, which company will be in line to have the merger with MRCB?

Could it be SP Setia looking at how it's price inching up for the last 1 week?

It should be noted that IJMLand itself would be better off without going through the merger with MRCB because its valuations would otherwise be severely diluted by the injection of low-yielding assets from MRCB into the enlarged company.

Consider this: IJM Land trades at a forward PE of 11x, and a steep 34% discount to our fully-diluted NAV of RM4.31/share. And, it is growing its earnings by a robust CAGR of 50% over FY11F-FY13F. In contrast, MRCB's earnings story lacks conviction as it is already trading at a steep forward consensus multiple of 36x and at only a 15% discount to our NAV of RM2.41/share.

We cannot see how the enlarged property entity would offer compelling earnings as well as a valuation story in the near term, without the transfer of low-yielding assets out of the enlarged entity. The latter exercise was to have taken place post-merger.

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Added on December 30, 2010, 3:47 pmIJM DIRECTORS SHOULD HAVE KNOWN BEFORE HAND THAT THE MERGER IS OFF BUT THEY DID NOT SELL THEIR SHARES MEANS THE SHARES WILL GO HIGHER IN THE NEAR FUTURE OR BETTER MERGER/ PRIVATISATION ETC

IMPORTANT THING IT IS A GOOD COMPANY AND MANAGEMENT

This post has been edited by lowyat888: Dec 30 2010, 03:49 PM

u seems fully supporting IJM..haha..good....~~~~

KNOW THEIR MANAGEMENT CEO, CHAIRMAN & DIRECTORS VERY WELL.

I pretty agreed on IJMLAND is a great company with many prospect especially in Penang state, the failure on the merging with MRCB have given IJMLAND not seating into no.2 in M'sia, that's might be little sour as it imply capital and landbank size of IJMLAND might not competitive to others which getting bigger from M&A exercise.

Don't get me wrong and i still optimistic and might even top up IJMLAND if the price is right, we hardly see a jewel like this however it is undeniable at the bad timing and people might in panic sell mood, is that an oppty to collect more instead ?

In fact, I'm looking at down side of MRCB instead since it miss out the chance of riding on lion

This post has been edited by officeBoy: Dec 30 2010, 05:44 PM

actually your facts is wrong, ijmland is riding on mrcb potential; a glc
top up ?? bad move, catching falling knife, getting emotional !!
a jewel ? how come it trade at around 1.50 & not at 3+ prior to rumours of merger.
ijmland earnings isn't apealing also even at 2.50
eps q1 4.85, q2 2.72....going down hill... per 20x......really an over price stock
cut & move on.

slts: I disagree with you.

IJM / IJMLAND are managed by real entrepreneur, while MRCB is really lucky to be "awarded" to develop KL Sentral/Sungai Buloh.

A more appropriate valuation for property company should be its RNAV. Even P/E wise, I do not think MRCB fares any better.

This post has been edited by ljchiun: Dec 30 2010, 10:35 PM

There are pros and cons.. But there is one fact, they broke off before getting married.

Now we usher into a new year, lets see what will the stock price reflects...

your logic is so....not logical. very hard to understand your logic.

Since Ivory only have the property decvelopment in Penang already running at price RM1.06, IJMLand even better compare to it. I believed IJNLand should be better than the others Property share too.

Logically I agreed with others forumer as IJMLand are better than MRCB too. I am wondering why IJMLand want to merge with MRCB, it can choose the others that having better portfolio.

I thought read thru the article said the IJM has been awarded a project in TTDI by Naza recently?

The share price always like this, once the merge or take over deal cant make it, ppl throw the share, the price will go sharply down, it should be able to pull back at the comfort level once the selling pressure gone. Those affected will be those share that happen to be on T3 or T4 due on yesterday.

Just my 2cents thought, i could be wrong.

Happy new year!

Want to know, how to calculate the execise price for IJMLAND-CA?
The last dated will be on 03/01/11. suppose the 5 days weighted adverage will be 27/12/10 to 31/12/10. But yesterday the IJM share has been stop & today is holiday.
Anyone know how the calculation? Thanks

This post has been edited by zmsoon: Dec 31 2010, 07:47 PM

Why must it be an average of 5 days?

Shouldnt it be (Warrant price x warrant ratio) + Strike price?

actually both are good companies in a their own way. MRCB is pure GLC which rely heavily on gov to feed them with projects .eg kl sentral/sg buloh and some highways concessionaire. Whereas IJMland is purely a company that based on merit, good quality, ontime delivery and ultra strict management.

suddenly found out , dis was my post LOL

too bad no cash to enter ..... wait other chance bah

agreeed~~~

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Added on January 3, 2011, 3:05 pmsomeone said...good news soon.....increase now.....tambah stock lor~~~~

This post has been edited by kennethlwc: Jan 3 2011, 03:05 PM

MRCB-IJM Land merger aborted ‘over CEO choice’

Source says breakdown of MRCB-IJM Land talks purely management related

PETALING JAYA: The inability of Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd to come to an agreement over who will lead the new entity is the cause of the merger between the two property firms being called off.

A source confirmed this to StarBiz yesterday following both companies' announcements to Bursa Malaysia last Thursday that the merger was aborted as they were unable to reach an agreement on the definitive terms and conditions of the proposed merger, following a series of discussions.

“The breakdown in talks is purely management related essentialy on the leadership of the new entity,” the source said.

He said there was a difference in opinion on whether MRCB chief executive officer (CEO) Mohamed Razeek Hussain or IJM Land CEO-cum-managing director Datuk Soam Heng Choon should lead the new entity.

“No one could agree on this fundamental issue,” he said.

According to sources, the Employees Provident Fund (EPF) abstained from the discussion due to the fund's stakes in IJM Corp Bhd (16.91% single-largest shareholder), IJM Land (5.77%) and MRCB (41.95%).

IJM Corp held a 62.76% stake in IJM Land.

Shares of IJM Corp, IJM Land and MRCB fell yesterday at the opening after being requoted following their suspension at midday last Thursday.

At the close, IJM Land fell 9 sen to RM2.77, IJM Corp dropped five sen to RM6.18 while MRCB added one sen to RM2.

It was understood that the newco would have stood a better chance at getting major portions of the EPF-led development of the 3,300-acre freehold land owned by the Rubber Research Institute in Sungai Buloh, one of the major projects under the Economic Transformation Programme.

MRCB is currently assisting the fund to masterplan the project and, notwithstanding the deal falling through, should still get portions of the project.

HwangDBS Vickers Research Sdn Bhd analyst Chong Tjen San observed that while it was disappointing that the deal was called off, both companies did not have much to worry about.

“All is not lost although MRCB will have lost the opportunity to leverage on IJM Land's township development expertise. However, MRCB should still be able to win the right to develop a sizable portion of the Sungai Buloh project, particularly the transport hub,” he said.

Chong said a well-run company such as IJM Land also had nothing to worry about. “Although the company stands a better chance in gaining a foothold in the Sungai Buloh project if the merger went through, they've other projects including the Light Waterfront project in Jelutong,” he said.

In fact, analysts were confident that IJM Land should weather the failed merger quite well as besides the RM5.5bil Light Waterfront project spread over 210 acres, the company was also in a 50:50 joint venture with Kumpulan Europlus Bhd to develop the 2,500-acre Canal City project near Kota Kemuning worth an estimated RM6.3bil.

http://biz.thestar.com.my/news/story.asp?f...55&sec=business

bought IJM-WA yesterday. Looking at pre-crash level 4 days back

wrong post


This post has been edited by free_enuf: Jan 4 2011, 06:59 PM

There is a rumour that IJMLand going to privatise after merger called off. IJMLand Directors are accumulating IJMLand shares.

RHB opined that by privatising IJM Land, it might enable the parent to be the component stock of the benchmark FBM KLCI.

IJM Corp will attract more foreign funds being on top 30 list.

What do you think LowYat888?

Another rumour?