IJM Board Urges Shareholders to Reject Sunway Takeover Bid Deemed ‘Not Fair’

KUALA LUMPUR, March 13 — The board of IJM Corporation Bhd has recommended that shareholders reject a takeover bid from Sunway Bhd after an independent adviser concluded that the offer is neither fair nor reasonable.

In a circular to shareholders, the company said the independent adviser M&A Securities Sdn Bhd determined that Sunway’s proposed offer price of RM3.15 per share undervalues IJM and does not adequately reflect the company’s estimated market value.

Offer Seen as Significant Discount

According to the adviser’s assessment, the proposed takeover price represents a discount of between RM2.69 and RM3.33 per share, equivalent to roughly 46% to 51% below IJM’s estimated share value of between RM5.84 and RM6.48.

Because of this substantial gap, the adviser concluded that the offer is not fair from a financial perspective

“The board has concurred with the conclusion and recommendation of M&A Securities that the offer is not fair and not reasonable,” IJM said in a filing.

Board Supports Adviser’s Recommendation

Following the independent evaluation, IJM’s board unanimously agreed with the adviser’s findings and urged investors not to accept the takeover bid.

The adviser also argued that the proposal is not reasonable, noting that IJM shares are actively traded on the market and shareholders can continue to benefit from the company’s future growth without giving up control to Sunway.

Details of the Proposed Acquisition

Sunway first announced the conditional voluntary takeover offer on January 12, aiming to acquire all 3.51 billion shares in IJM at RM3.15 per share through a combination of cash and Sunway shares.

If fully accepted, the deal would be worth around RM11 billion, potentially creating one of Malaysia’s largest construction and property conglomerates.

The offer remains open for shareholder acceptance until 5pm on April 6, 2026, giving investors time to consider whether to accept the proposal or follow the board’s recommendation to reject it.

Major Corporate Deal Under Scrutiny

The proposed acquisition has attracted significant attention across Malaysia’s corporate sector as it could reshape the competitive landscape of the construction and property industries.

IJM is one of Malaysia’s largest infrastructure and construction groups, with operations spanning property development, toll roads, ports and international infrastructure projects, while Sunway operates across multiple sectors including property, construction, healthcare and education.

Industry observers say the outcome of the takeover bid could have wider implications for consolidation among major Malaysian corporations in the coming years.