Sunway Berhad on 12 January launched a conditional voluntary takeover offer for IJM Corporation at RM3.15 a share, valuing the Malaysian builder and developer at about RM11.0bn (US$2.7bn).
Why Sunway Berhad is buying IJM Corporation Berhad
Sunway said combining the two groups would create Malaysia's largest property and construction conglomerate by revenue and total assets, unlock synergies and give the enlarged group a larger capital base to support financing. The group described the deal as building a national champion.
“this exercise will build a national champion, enhancing the enlarged group's scale and capability.”
Deal terms and financing
Each IJM share was to receive 31.5 sen in cash and about 0.501 new Sunway shares, with the cash portion of roughly RM1.1bn funded from debt and internal funds. The price was a 14.55% premium to IJM's last close of RM2.75 and implied 11.8 times EV/EBITDA. Sunway said it would not seek to maintain IJM's listing and would compulsorily acquire the rest if it reached 90%.
Regulatory approvals and timing
The offer required more than 50% acceptances, Sunway shareholder approval (the deal was 73.7% of Sunway's size under Bursa rules) and Bursa Malaysia approval to list the new shares. IJM's board, based on its independent adviser's evaluation, judged the offer not fair and not reasonable. The offer lapsed on 6 April 2026 after acceptances reached only 33.43%, and all tendered shares were returned.
Market context
Large state-linked funds decided the outcome: Permodalan Nasional declined to tender its 13.5% stake and the Employees Provident Fund, which holds more than 20%, also stayed out, leaving Sunway well short of control.
