This article first appeared in The Edge Financial Daily on November 23, 2017

IGB Corp Bhd (-ve)

SHARES in IGB Corp Bhd (fundamental: 1.6/3, valuation: 2.6/3) closed up seven sen or 2.43% yesterday at RM2.95, after 8.28 million shares were traded versus the counter’s 200-day average volume of 342,286 shares.

The group is principally engaged in property development and construction activities, as well as hotel management.

On Tuesday, IGB shareholders approved the proposed takeover of the group by Goldis Bhd, despite some dissatisfaction over the RM3 share valuation. IGB said the scheme was proposed to flatten the structure and consolidate both IGB and Goldis into a much bigger group, particularly as both the groups’ shares are “steeply undervalued”.

When the scheme is completed in February next year, IGB will be delisted, while Goldis will assume the name IGB Bhd, with the acronym standing for “Ipoh Goldis Bersatu”.