In  relation  to  the  conditional  Share  Sale  Agreement  (SSA)  between  its wholly-owned  subsidiary,  Road  Builder  (M)  Holdings  (RBH)  and  SILK Holdings  Berhad  (SHB)  for  the  acquisition  of  100%  equity  interest  in Sistem Lingkaran-Lebuhraya Kajang (SILK) for RM398m cash, IJM Corp announced that RBH and SHB have mutually agreed not to proceed with the SSA due to non-fulfilment of certain conditions precedent within the agreed timeline. As such, the SSA dated 20 June 2014 for the proposed acquisition lapsed yesterday and ceased to have any further effect. SHB shall  within seven days from today refund to RBH the deposit together with all interest accrued thereon. (Source: Bursa Malaysia)

Comments: With the proposed acquisition of SILK called off, there will be no change in our forecasts for IJM Corp. We had expected the proposed acquisition to complement and enhance the traffic volumes and values of the group’s NPE, Besraya and LEKAS highways.

IJM  Corp  is  currently  Not  Rated.  2QFY15  results  are  due  out  this morning.

Source: Affin Hwang Capital Research - 25 Nov 2014