Sunway’s IJM Takeover Bid Faces Rejection as Independent Adviser Deems Offer Unfair

Kuala Lumpur – A proposed takeover of IJM Corporation Bhd by Sunway Bhd is facing significant headwinds after an independent adviser recommended shareholders reject the offer, deeming it “not fair and not reasonable.” The assessment casts doubt on one of Malaysia’s largest corporate takeover attempts in recent years.

Independent Adviser’s Concerns

M&A Securities, the independent adviser appointed to evaluate the bid, found that Sunway’s offer price represents a discount of up to 51% to the estimated value of IJM shares . The adviser argued that IJM shares are sufficiently liquid, allowing current shareholders to realize their investment through on-market transactions without needing to exchange their holdings for Sunway shares.

Accepting the offer would result in IJM shareholders becoming minority shareholders in Sunway, exposing them to risks associated with the enlarged Sunway Group, including share price fluctuations and integration challenges .

Sunway’s Initial Offer

In January 2026, Sunway launched a cash-and-share offer to acquire IJM, valuing the property and infrastructure company at RM3.15 per share, or RM11 billion . The deal was contingent upon securing acceptance from holders of more than 50% plus one share.

Under the terms of the proposed deal, every 1,000 shares of IJM Corp would entitle the holder to RM315 in cash and 501 Sunway shares, valued at RM2,835 . If successful, the combined entity was projected to rival Gamuda Bhd as Malaysia’s largest construction firm by revenue.

IJM Board’s Recommendation

The board of IJM has concurred with M&A Securities’ assessment and unanimously recommends that shareholders reject Sunway’s offer .

Sunway’s Position

M&A Securities noted that even if the acquisition fails, Sunway’s influence in IJM will be limited, as it currently holds less than 1% of IJM’s shares .

Strategic Context

The proposed takeover reflects a trend towards consolidation within Malaysia’s corporate landscape, with companies seeking scale to enhance their competitive edge . Sunway, traditionally known for its patient and incremental growth under founder Jeffrey Cheah, appears to be shifting towards a more aggressive strategy of expansion through acquisitions.