IGB Corp up 15% on takeover offer

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KUALA LUMPUR (Feb 24): IGB Corp Bhd shares rose as much as 38 sen or 15% after controlling shareholder Goldis Bhd made a takeover offer for the remaining IGB shares at RM3 each.

Goldis already owns 73.43% of IGB, which is involved in diversified businesses including construction, property development and education.

IGB shares rose to their highest so far today at RM2.90. At 11:55am, the stock pared gains at RM2.88 for a market capitalisation of RM3.86 billion.

The fifth-largest gainer on Bursa Malaysia saw some two million shares traded. IGB's latest-reported net assets per share stood at RM3.3731.

Public Investment Bank Bhd said in a note today Goldis' offer was "not attractive" as the RM3 offer price was below Public Investment's revalued net asset value (RNAV) estimate of RM6.88 for IGB.

"The new bid offers about 19% premium to the last closing price. Again, we still believe the company is grossly undervalued and reckon the offer price, which is at 56% discount of our RNAV estimate, is not attractive," Public Investment said.