Sunway–IJM takeover at a glance
| Bidder | Sunway Bhd |
| Target | IJM Corporation Bhd (Bursa: IJM, 3336) |
| Offer type | Conditional voluntary takeover offer (VTO) |
| Offer price | RM3.15 per IJM share, about RM11 billion in total |
| How it was paid | For every 1,000 IJM shares: RM315 cash (31.5 sen a share) plus 501 new Sunway shares issued at RM5.65 each |
| Condition | Acceptances above 50% of IJM’s voting shares |
| Announced | 12 January 2026 |
| Closing date | 5pm, 6 April 2026 |
| Result | Lapsed with 33.43% acceptances; accepted shares were returned |
Full timeline of the Sunway bid for IJM
- 12 January 2026: Sunway announces a conditional voluntary offer for IJM at RM3.15 a share, valuing IJM at about RM11 billion. If it succeeded, the combined group would have been Malaysia’s largest construction and property conglomerate.
- Mid to late January: Resistance builds. Kenanga Investment Bank issues a “reject” call. Politicians question the deal because state-linked funds hold a large part of IJM. The Malaysian Anti-Corruption Commission (MACC) opens a probe into IJM-related matters.
- March: IJM’s independent adviser concludes the offer is not fair and not reasonable, putting the offer price at a 46% to 51% discount to its estimate of IJM’s value. IJM’s board recommends that shareholders reject.
- 26 March: Sunway shareholders approve the acquisition at an EGM, with 99.27% voting in favour.
- Late March: The EPF, IJM’s largest shareholder, is reported to have decided not to accept. Other institutions, including KWAP, are reported to follow. The MACC matter is reported as resolved for both companies.
- 6 April, 5pm: The offer closes. Sunway has acceptances for 33.43% of IJM’s shares, well short of the 50% condition, so the offer lapses. IJM closes the day at RM2.36.
- After the bid: IJM says its focus is “execution and unlocking the value of the portfolio”. In August 2026 it confirms preparations to list its construction division, targeting 3Q2027.
Why the offer failed
1. The price was well below independent valuations
The independent adviser’s valuation range sat far above RM3.15. When an adviser says an offer is at a 46% to 51% discount to fair value, institutions that must act in their members’ interests find it hard to accept. That was the single biggest reason the bid struggled.
2. Most of the payment was in Sunway shares, not cash
Only 10% of the price (31.5 sen a share) was cash. The rest was new Sunway shares valued at RM5.65 each. Accepting meant swapping IJM for Sunway shares at a fixed ratio. That only made sense if you believed Sunway shares were worth at least RM5.65, and the value of the offer moved up and down with Sunway’s share price.
3. Institutional shareholders held the key
State-linked funds such as EPF, PNB and KWAP together controlled a large part of IJM. With the biggest of them choosing not to accept, getting past 50% became close to impossible. Sunway had said early on that it would not raise its price and would walk away if it did not get majority control.
4. Political and regulatory noise
Questions about national interest and the MACC probe added uncertainty during the offer period, which made some holders cautious about accepting.
What it meant for IJM shareholders
- If you accepted: because the offer lapsed, your IJM shares were returned. You still own IJM, not Sunway.
- If you did nothing: nothing changed. You kept your IJM shares.
- Share price: IJM traded below the RM3.15 offer during the period, a sign the market doubted the deal would succeed. It closed at RM2.36 on the day the offer lapsed.
What’s next for IJM after the failed takeover
- Construction arm listing: IJM has started preparing to list its construction division on Bursa Malaysia, targeting 3Q2027. The Edge has reported a valuation of about RM5 billion for the business.
- Toll asset monetisation: IJM is running a request-for-proposal process for highway assets such as the New Pantai Expressway, Sungai Besi Expressway and Kajang–Seremban Highway, subject to government approval.
- Capital returns: IJM has outlined a three-year plan to distribute about RM3 billion to shareholders, funded by the listing, toll asset sales and its exit from India.
- Order book: IJM reported an outstanding construction order book of about RM17.3 billion around the time the bid lapsed.
What’s next for Sunway
Sunway said it respects the outcome and will keep executing its existing strategy across property, construction, healthcare and other businesses, pursuing growth “in a disciplined way”. It did not raise its offer.
Lessons for retail investors from the Sunway–IJM bid
- Read the independent adviser’s circular. It is the best free valuation of the target you will get during a takeover.
- Look at what you are being paid in. A share-swap offer is only worth what the bidder’s shares are worth.
- Check who the big shareholders are. When funds such as EPF and PNB own a large part of a company, their decision usually settles the outcome.
- Watch the market price against the offer price. A wide gap means the market thinks the deal may fail.
- A failed takeover is not the end of the story. Targets often unlock value after a bid, through listings, asset sales or special dividends.
Frequently asked questions
Did Sunway take over IJM?
No. The offer lapsed on 6 April 2026 with acceptances of 33.43%, below the more-than-50% condition.
What was Sunway’s offer price for IJM?
RM3.15 per IJM share, paid as 31.5 sen in cash plus new Sunway shares at RM5.65 each (501 Sunway shares for every 1,000 IJM shares).
What happened to IJM shares that were accepted?
They were returned to shareholders because the offer did not become unconditional.
Why did EPF reject the Sunway offer?
EPF did not give a detailed public explanation. The independent adviser had valued IJM well above RM3.15, and reports said EPF did not consider the price reflected IJM’s value.
Will Sunway make another offer for IJM?
Sunway has not announced any new offer. Under Malaysian takeover rules, a bidder whose offer lapses is generally restricted from making a new offer for the same company for 12 months, unless the Securities Commission agrees otherwise.
Is IJM a buy after the failed takeover?
That depends on your own goals and research. Watch the progress of the construction arm listing (targeted for 3Q2027) and the toll asset sales, which are the main value-unlocking events IJM has outlined. This article is not a recommendation.
Key takeaways
- Sunway’s RM3.15-a-share, RM11 billion offer for IJM lapsed on 6 April 2026 at 33.43% acceptances.
- A price far below independent valuations, mostly paid in shares, plus institutional rejections sank the deal.
- IJM is pursuing value on its own: a construction arm listing targeted for 3Q2027, toll asset monetisation and about RM3 billion in planned distributions.
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Disclosure: Dexter Chia is a licensed dealer’s representative (DR code R336) at Malacca Securities Sdn Bhd. This article is for education only and is not investment advice. Sources: Bursa Malaysia announcements as reported by The Edge Malaysia, Business Today, The Star, NST, Fortune and Bernama (January–August 2026).
