Sunway bids $2.71 billion for IJM to form Malaysian building 'champion'
FILE PHOTO: A view of Kuala Lumpur's skyline, in Malaysia July 31, 2025. REUTERS/Hasnoor Hussain/File Photo
Jan 12 : Malaysian conglomerate Sunway launched a takeover bid for IJM Corp on Monday in an attempt to acquire the construction firm for about 11 billion ringgit ($2.71 billion).
A deal would combine two sizeable Malaysian builders and property players at a time when contractors are competing for scale, financing and technical talent to pursue larger infrastructure and advanced technology facility projects.
Sunway said in a stock exchange filing that an enlarged group could deliver procurement savings and operational efficiencies, while a bigger equity base and free float could broaden investor appeal and lower the cost of capital.
"The successful completion of the proposed offer will establish an enlarged conglomerate involved in property development and construction in Malaysia which, based on revenue and asset base, would create a national champion," it said.
Sunway said the proposed group would have total assets of 57.8 billion ringgit, which LSEG data showed would place it among Malaysia's larger listed property-and-construction groups, behind diversified conglomerate YTL.
The offer prices IJM's shares at 3.15 ringgit each, a 14.5 per cent premium to the stock's last close on Friday.
IJM shareholders are being offered 10 per cent in cash and 90 per cent in newly issued Sunway shares, implying 0.315 ringgit in cash and 2.835 ringgit in Sunway shares per IJM share, based on 5.65 ringgit for the new Sunway shares.
COMPLETION BY THIRD QUARTER
Assuming full acceptance, the total consideration will comprise 1.10 billion ringgit in cash and the issuance of 1.76 billion shares, Sunway said, adding it holds no IJM stock.
The offer is conditional on Sunway receiving acceptances that take it above 50 per cent of IJM's voting shares, as well as approvals including from the acquiror's shareholders.
Sunway said the cash will be funded through borrowing and/or internally generated funds.
Sunway said it may seek to delist IJM if public float requirements are not met following the offer and it may pursue a compulsory acquisition if it reaches the 90 per cent threshold.
It expects completion by the third quarter of 2026.
Trading in both stocks was halted ahead of the announcement and will resume on Tuesday. Sunway shares rose 21 per cent over the past year, while IJM dropped 8.9 per cent, LSEG data showed.
($1 = 4.0600 ringgit)
