Business News

Sunway’s RM3.15 Takeover Offer Seen as Fair Exit for IJM

Sunway’s RM3.15 takeover bid for IJM offers a fair exit, modest premium, and continued exposure to construction growth through Sunway shares despite limited valuation upside and sector consolidation potential.

IJM Corporation Berhad has received a conditional voluntary takeover offer from Sunway Bhd at RM3.15 per share, prompting analysts to recommend accepting the offer despite limited upside.

The offer values IJM at RM11.04 billion and will be settled through a mix of 10 percent cash and newly issued Sunway shares priced at RM5.65. Based on the structure, shareholders gain continued exposure to Malaysia’s construction and infrastructure upcycle via Sunway.

Fair Exit

The offer represents a 14.5 percent premium to IJM’s previous close and implies a forward FY27 price earnings multiple broadly in line with historical averages.

While the price sits slightly below revised fair value estimates, it is close to IJM’s net tangible asset per share. Sunway does not plan to maintain IJM’s listing and may eventually consolidate overlapping construction, manufacturing, and quarrying businesses.

Approval thresholds and major institutional shareholder decisions will be key to the outcome. Market reaction expected to stabilise.

Business News

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