Property & construction stocks high on M&A

We have seen lately several companies have been on the spotlight, either being taken over or merging to leverage on each others strength be it capability or branding.

Take over of Sunrise by UEMLand was good for both companies and similarly for Ijmland which has long been under scrutiny by many for being undervalued has finally signed MoU with MRCB to merge into a new entity and take over the listing of both companies.

Another will be the merger of Suncity and Sunway which is probably going to be the last of its kind in these sectors for M&A activities.

While UEMLand is now the largest property counter in a enlarged market capital of ãround RM10bil. While IJMLand and MRCB will now become the 2nd largest with ~7-8bil market cap, its strategic land bank ~in excess of 9000 acres as well as its potential in securing large projects is very promising.

While I personally think RM3.83 would better reflect the value of IJMLand, the price of RM3.65 for IJMLand is about right in my opinion due to the timing and also the huge potential that opens up for the new company.