Sunway ceases to be substantial shareholder of IJM

• Sunway said its wholly-owned subsidiary Fortuna Gembira Enterpris Sdn Bhd ceased to be a substantial shareholder of IJM after selling 2.8 million shares or a 0.08% stake via the open market on Friday.

KUALA LUMPUR (Sept 29): Sunway Bhd, and in turn its founder and executive chairman Tan Sri Jeffrey Cheah Fook Ling, have ceased to be a substantial shareholder of construction giant IJM Corp Bhd following a 0.08% stake disposal.

In a bourse filing on Friday, Sunway said its wholly-owned subsidiary Fortuna Gembira Enterpris Sdn Bhd ceased to be a substantial shareholder of IJM after selling 2.8 million shares or a 0.08% stake via the open market on Friday.

Based on back-of-the-envelope calculations, Sunway’s shareholding in IJM — all of which was held under Fortuna Gembira — fell to 173.79 million shares or a 4.95% stake.

Cheah owns a 65.22% stake in Sunway.

IJM has yet to file an announcement on the bourse notifying about Sunway and Cheah’s cessation as substantial shareholders of the group.

Earlier this week, Sunway via Fortuna Gembira disposed of 2.22 million shares or a 0.06% stake in IJM.

Prior to the disposals this week, Sunway had left its shareholding in IJM untouched since emerging as a substantial shareholder.

Sunway first emerged as a substantial shareholder of IJM back in July 2021 with a then 5.02% stake or 180.25 million shares.

After various share buybacks by IJM, Sunway’s block of 180.25 million shares represented a 5.14% stake — based on a share base of 3.51 billion shares.

Earlier in July this year, IJM announced that it inked an agreement that would see it emerging as Pestech International Bhd’s largest shareholder with a 44.83% stake via a RM124 million restricted issue — subscription of 800 million shares at 15.5 sen apiece.

The group called the move a synergistic opportunity for it and Pestech to strengthen their positions in the energy transmission and rail electrification sectors, adding that the combined capabilities of the pair as civil and systems contractors enable the offering of more comprehensive and turnkey solutions for local and international rail project bids.

It is worth noting that later in August, Pestech had its RM742.95 million aerotrain train project at the Kuala Lumpur International Airport (KLIA) from Malaysia Airports Holdings Bhd terminated due to the former’s alleged non-performance. 

Pestech claimed that the termination of the contract was “misconceived and invalid”. It has also been reported that IJM has set its sights on bidding for the RM742.95 million aerotrain contract.

Shares in IJM ended three sen or 1.64% higher at RM1.86, giving the group a market capitalisation of RM6.81 billion.

Meanwhile, Sunway’s shares finished two sen or 1.01% lower at RM1.97, valuing the group at RM9.85 billion.

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