KUALA LUMPUR: Sunway Bhd
has fallen short in its bid to take over IJM Corp Bhd, having secured just 1.17 billion IJM shares representing 33.43% of the total voting shares.
In a statement, Maybank Investment Bank said Sunway did not meet the acceptance condition as it did not hold in aggregate more than 50% of the voting shares in IJM as at the close of the offer at 5pm today.
"Accordingly, the Offer has lapsed and ceased to be capable of further acceptance and all acceptances will be returned to the Accepting Holders and the Offeror will thereafter cease to be bound by any such prior acceptances of the Offer," it said.
Sunway had made an offer of RM3.15 per IJM share, comprising 10% cash or 31.5 sen per IJM share, and the remaining 90% in new Sunway shares at RM5.65 each. The offer was rejected by IJM's board subsequent to an independent adviser's evaluation that the offer was "not fair" and "not reasonable".
IJM's group CEO and managing director Datuk Lee Chun Fai said in a statement issued by IJM that the company will "move forward with resolve" now the offer had been concluded.
"Our priority now remains on execution and unlocking the value of the portfolio we have built.
"IJM has always been, and remains, a fundamentally strong company with a clear strategy and a resilient pipeline. Our shareholders have decided, and we respect the conviction they have placed in IJM's long-term intrinsic value," he said.
Meanwhile, Sunway issued a separate statement, saying it "respected the decision of the IJM shareholders and the outcome of the process".
The group noted that its shareholders had expressed overwhelming support for the proposal, with 99.27% voting in favour of the takeover, at its extraordinary general meeting held recently.
"From the outset, our proposal was guided by a clear and consistent principle that the enlarged group would create long-term, strategic and sustainable value for all stakeholders.
"It was structured to enable shareholders to participate in the future growth of a larger, more resilient “national entity,” anchored on strong fundamentals and a proven track record of delivery," said Sunway.
IJM's shares closed five sen higher at RM2.36 on Monday for a market capitalisation of RM8.61bil.
Shares in Sunway closed four sen lower at RM4.99 with a market cap of RM33.96bil.
