Sunway’s Bid for IJ M Corporation Bhd and Recent Contract Wins
Take‑over Offer Overview
On 2 April 2026, Sunway Bhd (KL:SUNWAY) announced a RM 11 billion cash‑and‑share proposal to acquire IJ M Corporation Bhd (KL:IJM).
- Tan Sri Jeffrey Cheah Fook Ling, founder and 59.4 % shareholder of Sunway, publicly urged IJ M shareholders to assess the offer objectively.
- The Employees Provident Fund (EPF), IJ M’s largest shareholder, chose to abstain from voting on the offer.
- Under Malaysian takeover rules, an Extraordinary General Meeting (EGM) of IJ M shareholders is not required because IJ M is the target; the offer is made directly to its shares.
Market Reaction
- Sunway’s share price fell to a seven‑month low following the announcement that IJ M’s major shareholder rejected a bid, reflecting investor concern about the valuation and the lack of a formal vote.
- Despite the market pressure, Sunway’s bid remains on the table while the company seeks to persuade IJ M shareholders of its merits.
IJ M’s Recent Business Development
In the week preceding the takeover announcement, IJ M’s construction subsidiary, IJM Construction Sdn Bhd (IJMC), secured a significant contract:
| Date | Source | Contract | Client | Project | Value |
|---|---|---|---|---|---|
| 1 April 2026 | KLS Screen | Main building works (core & shell) for a hyperscale data centre | Sime Darby Property (EBP Asset II) | Elmina Business Park, Selangor | RM 658 million (≈ USD 150 million) |
- The contract, announced by multiple media outlets (KLS Screen, The Star, The Edge Malaysia), involves the construction of a hyperscale data centre, a high‑profile project that highlights IJ M’s expertise in large‑scale infrastructure.
- The award demonstrates IJ M’s continued capability to win sizeable projects, which could be a point of consideration for Sunway in evaluating the strategic value of the acquisition.
Financial Snapshot (as of 30 March 2026)
- Close Price: MYR 2.19
- 52‑Week High/Low: MYR 3.13 / MYR 1.80
- Market Capitalisation: MYR 7.68 billion
- Price‑Earnings Ratio: 25.34
- Sector: Industrials (textiles and garments)
These figures provide context for the current valuation of IJ M and the relative attractiveness of Sunway’s offer.
Regulatory Framework
The Malaysian Securities Commission has clarified that, under Paragraph 9.19 (47A) of the Take‑Overs & Mergers Rules, an EGM is not required when a target company receives an offer; the offer is directed to the target’s shareholders. This rule applies to the current Sunway–IJ M transaction and underpins the procedural steps outlined by both parties.
Outlook
- Sunway’s bid is still subject to shareholder approval. The EPF’s abstention and the recent market decline of Sunway’s shares suggest that the outcome remains uncertain.
- IJ M’s recent contract win may bolster its appeal as a strategic acquisition target, potentially influencing shareholders’ assessment of Sunway’s proposal.
Stakeholders will continue to monitor shareholder meeting dates and regulatory filings for developments in the takeover process.
