PETALING JAYA: Sunway Bhd
has failed to meet the conditional requirement of acquiring more than a 50% stake in IJM Corp Bhd, effectively halting its proposed takeover.
By the 5pm deadline yesterday, the conglomerate had secured acceptances for only 33.43% of IJM shares, falling short of the required threshold.
“The offer has lapsed and ceased to be capable of further acceptance, and all acceptances will be returned to the accepting holders, and Sunway will thereafter cease to be bound by any such prior acceptances of the offer,” Maybank Investment Bank said in a statement yesterday.
The proposed RM11bil offer, unveiled in mid-January, consisted of 10% cash (31.5 sen per IJM share) and 90% in new Sunway shares – 0.501 shares priced at RM5.65 each for every IJM share.
The proposal, which represented a 28% premium to IJM’s market price at the time, would have required the issuance of around 1.76 billion new Sunway shares and approximately RM1.1bil in cash.
In a statement, Sunway said its 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.
“We respect the decision of IJM shareholders and the outcome of the process. In any transaction of this scale, differing perspectives are natural, and we acknowledge the robust public discourse that has accompanied the offer.”
Sunway said it remains firmly focused on executing its strategy and continuing to deliver value across its integrated businesses. “We will continue to build on our strengths, pursue opportunities with discipline, and remain committed to creating long-term value for our stakeholders, the communities we serve and the nation at large.”
Meanwhile, IJM group chief executive officer and managing director Datuk Lee Chun Fai said the group’s priority now remains on execution and unlocking the value of the portfolio it has built.
“With the offer now concluded, IJM moves forward with resolve, executing an enhanced strategy to deliver the value of its portfolio across the group’s core businesses.
“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.”
Sunway shares fell four sen, or 0.8%, to RM4.99 yesterday, reducing the company’s market capitalisation to RM33.96bil.
Meanwhile, IJM shares closed five sen higher at RM2.36, valuing the company at RM8.61bil.
