KUALA LUMPUR (Aug 11): Sunway Bhd has emerged as a substantial shareholder of IJM Corp Bhd as its shareholding has reached 5.017% as a result of the latter's continued share buy-back activities.
In a filing with the bourse, IJM said Sunway's stake increased by virtue of the equity interest held through Fortuna Gembira Enterpris Sdn Bhd. The group holds a total of 180.25 million shares.
Notably, IJM, which sold a 56.2% stake in IJM Plantations Bhd to Kuala Lumpur Kepong Bhd for RM1.53 billion cash, has been buying back shares on the open market since February while its share price has been on an upward trend.
The company had bought back 52.54 million shares as at Aug 9.
Following the stake sale in IJM Plantations, IJM said it plans to utilise part of the proceeds to undertake share buy-back activities for capital management purposes. In total, RM800 million was allocated for capital management activities.
IJM's share price gained four sen to RM1.84, giving a market capitalisation of RM6.71 billion. Sunway fell two sen to RM1.74, giving a market capitalisation of RM8.6 billion.