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A PROPOSED takeover of IJM Corporation Bhd by Sunway Bhd has gained overwhelming shareholder support, with its proponents positioning the move as a strategic step towards creating a stronger, more competitive national champion with long-term value for investors.
The plan, which involves a voluntary conditional offer to acquire all 3.51 billion IJM shares at RM3.15 each, values the deal at approximately RM11 billion and combines cash with newly issued shares.
Jeffrey Cheah, founder and chairman of Sunway Group, described the proposal as an opportunity to consolidate strengths across both entities to enhance competitiveness domestically and regionally. He said the integration would unlock the latent potential within IJM’s assets through Sunway’s broader business ecosystem and expertise.
“When we approach IJM shareholders, we are not acquiring the company to remove them. Instead, we are offering 10 per cent in cash and 90 per cent in shares.
“This means Bumiputera shareholders and others will not be sidelined, but will instead remain part of a larger entity under Sunway. In fact, some of them are already Sunway shareholders.
“Therefore, there is no question that they will not share in the future growth and prosperity of the combined group. I believe this is a very good offer for both parties,” he said at a media briefing.
The proposal has already secured more than 99 per cent approval from Sunway shareholders at an extraordinary general meeting, signalling strong internal backing. Sunway also confirmed it had received clearance from the Malaysian Anti-Corruption Commission, stating that no investigation is being conducted into the acquisition.
Under the offer structure, IJM shareholders would receive 10 per cent in cash and 90 per cent in Sunway shares, allowing them to retain equity participation in the enlarged entity.
Major IJM shareholders include institutional investors such as the Employees Provident Fund Malaysia and Kumpulan Wang Persaraan Diperbadankan, as well as funds under Permodalan Nasional Bhd and Tabung Haji.
Cheah expressed confidence that the required acceptance threshold would be achieved, including support from key institutional investors.
“I would like to emphasise that this is a very good opportunity for IJM and its shareholders. We see this as a chance to create a national champion that will benefit all parties,” he said.
Idris Jala, co-chairman of Sunway Group, highlighted the company’s track record as a basis for confidence in the proposal.
He noted that between 2016 and 2025, Sunway delivered a 387 per cent return to shareholders, significantly outperforming peers such as Gamuda Bhd at 147 per cent and YTL Corporation Bhd at 67 per cent, while IJM recorded a decline of around nine per cent.
“This clearly shows Sunway’s ability to consistently create value for shareholders,” he said, adding that a RM1,000 investment in Sunway in 2016 would have grown to about RM4,870 by end-2025, compared with roughly RM910 for IJM.
He added that Sunway’s stronger net profit performance and pre-tax margins indicate significant upside potential if the two companies are integrated
“The merger is estimated to generate an additional RM300 million annually through margin improvements alone, excluding operational synergies,” he said.
Idris also highlighted Sunway’s financial capacity to execute the deal independently, supported by approximately RM2 billion in cash and more than RM6 billion in financing facilities.
He said the enlarged group would benefit from operational synergies, including cost efficiencies, procurement optimisation and improved margins, while strengthening capabilities in infrastructure and engineering.
“The merger will generate operational synergies including cost efficiencies, procurement optimisation and margin improvements, while enhancing capabilities in the infrastructure and engineering sectors.
“A larger scale is also expected to improve access to financing for infrastructure projects, particularly in an increasingly competitive global investment environment,” he said. - March 26, 2026