KUALA LUMPUR: IJM Corp Bhd
’s board concurs with independent adviser M&A Securities Sdn Bhd that the takeover offer by Sunway Bhd is “not fair and not reasonable”, and has recommended that shareholders reject the proposal.
The independent advice circular (IAC) assessed the fair value of IJM shares in the range of RM5.84 to RM6.48 per share.
“Based on the offer structure and after adjusting for the special distribution of Sunway Healthcare shares to Sunway shareholders in connection with its IPO, the implied consideration to IJM shareholders is RM3.08 per share.
“This represents a 47.6% to 52.7% discount to the valuation range determined by the independent adviser,” it said in a statement.
Separately, IJM’s financial adviser Rothschild & Co Malaysia Sdn Bhd estimated the group’s indicative equity value at RM16.81bil to RM19.72bil, equivalent to RM4.80 to RM5.63 per share.
“While the IJM Board’s recommendation is guided by the opinion of the independent adviser, it also notes that the independent valuation by Rothschild & Co, which serves as a secondary reference, indicates a value materially above the offer price of RM3.15 per share,” IJM said.
Under the proposed offer structure, comprising 90% Sunway shares and 10% cash, IJM shareholders would hold a 20.6% minority stake in the enlarged Sunway Group.
IJM said the valuation disparity should also be viewed in the context of the group’s investment cycle, with several key assets nearing operational stages, including the West Coast Expressway scheduled for completion this year and the New Pantai Expressway extension targeted for completion in 2029.
“As these assets move into full operation, they are expected to contribute more meaningfully to earnings and cash flow,” it added.
Group chief executive officer and managing director Datuk Lee Chun Fai said many of IJM’s key assets are now moving from an investment phase into their operational phase, and their earnings contribution will become increasingly visible as these projects come onstream.
“Accepting the offer at this stage would mean exiting before the value of these assets is fully realised. Our focus remains on executing our strategy and delivering the value of the portfolio we are building,” he added.
IJM currently has a RM16.6bil construction order book, with industrial buildings accounting for 39% of the outstanding order book in Malaysia and Singapore.
The group has also achieved the higher end of its FY2026 replenishment target, securing approximately RM8bil in new contracts, while maintaining a RM17bil tender book.
It has also expanded into the data centre and high-tech industrial sectors, which now represent the fastest-growing segment of its portfolio.
IJM is currently executing more than RM3.5bil in data centre-related projects, including a RM2.1bil project in Elmina Business Park and a RM1.4bil fast-track facility in Johor.
