KUALA LUMPUR (Feb 27): Sunway Bhd has made it clear that it will abandon its proposed acquisition of IJM Corp Bhd if IJM shareholders choose not to accept the offer before the early April deadline.
Sunway Group founder Jeffrey Cheah emphasised that the transaction is entirely voluntary and based on commercial merit. Speaking after the prospectus launch of Sunway’s healthcare arm, he stressed that there is no element of compulsion in the deal.
“There is no mandatory acquisition. IJM shareholders are free to decide. If they accept, we proceed. If not, we walk away,” he said, describing the proposal as a willing-buyer, willing-seller arrangement.
Announced on Jan 12, Sunway’s offer values IJM at over RM11 billion. Under the proposed structure, every 1,000 IJM shares would be exchanged for RM315 in cash and 501 new Sunway shares valued at RM2,835.
If completed, the enlarged entity would rival Gamuda Bhd as one of Malaysia’s largest construction players by revenue.
The offer was made before IJM came under scrutiny related to investigations by the Malaysian Anti-Corruption Commission and the Inland Revenue Board concerning alleged overseas assets. IJM has denied any wrongdoing linked to its leadership.
Following Sunway’s declaration of a two-sen dividend for the financial year ended Dec 31, 2025, the group revised the cash component of its offer.
The cash consideration will increase from 31.5 sen to approximately 32.5 sen per IJM share, reflecting the adjustment for the interim dividend and the 0.501 Sunway shares to be issued per IJM share accepted.
IJM remains a diversified conglomerate with exposure to construction, property development, infrastructure concessions, ports and manufacturing. Its current order book stands at RM4.4 billion, with RM1.59 billion in unbilled property sales.
A potential merger between Sunway and IJM would significantly reshape Malaysia’s construction and development landscape. For stakeholders in commercial property in KL and large-scale township projects across the Klang Valley, consolidation of major contractors can influence project pipelines, pricing competitiveness and delivery capacity.
Large infrastructure and mixed-use developments often have direct spillover effects on:
Industrial land in Selangor linked to logistics and manufacturing expansion
Industrial property in Subang area supporting supply chain growth
Factory developments in Puchong driven by infrastructure upgrades
Office space in Bukit Jalil and Greater Kuala Lumpur serving corporate tenants
Stronger construction balance sheets may accelerate infrastructure rollout, indirectly supporting demand across these industrial and commercial segments.
At the time of reporting, Sunway shares were trading 15 sen lower at RM5.80, giving the group a market capitalisation of RM39.47 billion.
Whether the deal proceeds will now depend entirely on IJM shareholders’ response. Should acceptance levels fall short, Sunway has indicated it will not pursue the acquisition further.
For property investors and developers active in Kuala Lumpur and Selangor — particularly those focused on industrial land acquisitions, factory spaces in Puchong, and office investments in Bukit Jalil — the outcome of this proposed consolidation could influence the competitive dynamics of Malaysia’s construction and property development sector in the years ahead.
Malaysia