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Sunway Group has announced a takeover bid for Malaysian construction and property major IJM Corp, valuing the deal at about 11 billion ringgit. The move aims to create a larger, stronger group as demand grows for scale, funding strength, and specialised skills in infrastructure and real estate projects. Sunway expects benefits such as cost savings, smoother operations, and improved financial capacity. The combined entity would have assets of nearly 58 billion ringgit, placing it among Malaysia's biggest property and construction players. IJM shareholders are being offered a mix of cash and Sunway shares at a premium, with the transaction targeted for completion by the third quarter of 2026.
Malaysian conglomerate Sunway Group on Monday announced a takeover bid for construction and property major IJM Corp, valuing the deal at about 11 billion ringgit (USD 2.71 billion). The proposed acquisition brings together two large players in Malaysia's construction and real estate sectors at a time when scale, funding capacity, and specialised talent are becoming critical for securing large infrastructure and advanced technology projects. Advertisement
In a filing to the stock exchange, Sunway said the combination would create a stronger and more competitive group with improved operational efficiency. The company highlighted potential procurement savings, streamlined operations, and stronger financial positioning as key benefits of the merger. A larger equity base and increased free float are also expected to widen investor participation and reduce the overall cost of capital.
Sunway said the merged entity would operate as an enlarged conglomerate with significant presence in property development and construction across Malaysia. Based on revenue and asset size, the group would emerge as a national-level player in the sector. The proposed group would have total assets of 57.8 billion ringgit, which would place it among the country's larger listed property and construction companies, second only to diversified conglomerate YTL, according to LSEG data.
Under the offer, IJM shares are priced at 3.15 ringgit each, representing a premium of 14.5 per cent over the stock's last closing price on Friday. IJM shareholders are being offered a mix of cash and shares, with 10 per cent of the consideration in cash and 90 per cent in newly issued Sunway shares. This translates to 0.315 ringgit in cash and 2.835 ringgit worth of Sunway shares per IJM share, based on a valuation of 5.65 ringgit per new Sunway share.
If the offer receives full acceptance, the total consideration would include 1.10 billion ringgit in cash and the issuance of 1.76 billion new Sunway shares. Sunway clarified that it does not currently hold any shares in IJM.
The offer is subject to several conditions, including Sunway securing more than 50 per cent of IJM's voting shares and obtaining required approvals, including from its own shareholders. The cash portion of the deal will be funded through borrowings and internal resources.
Sunway said it may seek to delist IJM if public shareholding requirements are not met after the acquisition. A compulsory acquisition could also be pursued if Sunway's stake reaches 90 per cent. The company expects the transaction to be completed by the third quarter of 2026.
Trading in both Sunway and IJM shares was halted ahead of the announcement and is scheduled to resume on Tuesday. Over the past year, Sunway shares have risen 21 per cent, while IJM shares have declined 8.9 per cent, according to LSEG data.
Source: Reuters
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