IJM Plantations up 9.78% after reported as takeover target

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KUALA LUMPUR (Aug 7): IJM Plantations Bhd gained as much as 22 sen or 9.78% to a six-month high of RM2.47 in early trade today after a news report cited the company as a takeover target.

As at 10.41am, the stock had pared gains to trade at RM2.40, after 148,000 shares were traded.

According to a report by a local business daily today, suitors for IJM Plantations, valued at a time when demand for mature plantations in Sabah is on the rise, include IOI Corp Bhd and Hap Seng Plantations Holdings Bhd.

Citing sources, the report named IOI as the leading candidate due to its financial resources and the East Malaysian location of its existing plantations.

It also said current low prices of crude palm oil are viewed as a conducive environment for acquisitions.

Crude palm oil last closed at RM2,206 yesterday, according to data from the Malaysian Palm Oil Council.