Sunway's RM11 Billion Bid for IJM: Full Timeline, Controversy & Verdict
•By Maher Alias
Artikel ini juga tersedia dalam Bahasa Melayu
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On 12 January 2026, Sunway Bhd sent shockwaves through Malaysia's capital markets by announcing a Voluntary Takeover Offer (VTO) for IJM Corporation Bhd worth approximately RM11 billion. If successful, the merger would have created Malaysia's largest property and construction conglomerate, surpassing Gamuda Bhd.
However, what followed was a rare corporate drama on Bursa Malaysia - rejection after rejection from major institutional shareholders, an MACC investigation, and a war of words between both sides. This article presents the full timeline of the Sunway-IJM saga from day one to the deadline on 6 April 2026.
Before diving into the timeline, let us understand the structure of Sunway's offer:
| Details | Value |
|---|---|
| Offer price per IJM share | RM3.15 |
| Total consideration | ~RM11 billion (~USD 2.7 billion) |
| Cash component | 10% (RM1.1 billion) |
| Share swap component | 90% (new Sunway shares at RM5.65 per share) |
| Exchange ratio | ~0.557 Sunway shares for every 1 IJM share |
| Acceptance threshold | >50% of IJM voting shares |
| Delisting threshold | 90% of IJM shares |
| Deadline | 6 April 2026, 5:00 PM |
In summary, for every IJM share held, shareholders would receive RM0.315 in cash and the remainder in new Sunway shares.
Sunway Bhd officially announced a conditional voluntary takeover offer for all 3.51 billion ordinary shares in IJM Corporation Bhd at RM3.15 per share. Maybank Investment Bank was appointed as adviser and filing agent for Sunway.
The announcement triggered a wave of speculation in the market. If successful, the combined entity would become Malaysia's largest property and construction conglomerate, larger than Gamuda Bhd, which at the time had a market capitalisation of approximately USD 7.2 billion.
Kenanga Investment Bank was among the first to issue its view, maintaining a "Reject Offer" recommendation as it considered the RM3.15 price did not reflect IJM's true value. IJM's board of directors also began signalling opposition to the deal.
The offer acceptance deadline was officially set for 5:00 PM, Monday 6 April 2026 - giving IJM shareholders approximately two months to make their decision.
Sunway publicly stated that the IJM acquisition was an attractive investment. However, in a Bloomberg report, Sunway also signalled that they were willing to walk away if the offer was rejected - indicating no intention to raise the offer price.
Tan Sri Jeffrey Cheah, Sunway's founder, stated: "If we don't get 50% plus one share, we will walk away. We have given our best."
The Malaysian Anti-Corruption Commission (MACC) announced an investigation into the proposed acquisition. The investigation covered potential corruption, governance issues, procurement processes, and overseas assets worth approximately RM2.5 billion linked to IJM.
MACC Chief Commissioner Tan Sri Azam Baki confirmed the investigation involved public funds - referring to EPF's and PNB's significant stakes in IJM.
M&A Securities Sdn Bhd, IJM's independent adviser, officially advised shareholders to REJECT the offer. Their conclusion was firm: the offer was "not fair and not reasonable".
Valuations conducted:
IJM's board of directors unanimously agreed and recommended rejection.
Permodalan Nasional Bhd (PNB), IJM's second-largest shareholder with a 13.3%-13.5% stake, officially rejected Sunway's offer. PNB cited IJM's intrinsic value and stronger long-term growth potential as the main reasons for rejection.
Sunway shareholders voted overwhelmingly in favour of the acquisition - 99.27% approved the proposal. However, PNB's rejection and EPF's expected rejection had already become insurmountable obstacles.
The Employees Provident Fund (EPF), IJM's largest shareholder with a 20.52% stake, officially rejected Sunway's offer. EPF stated the offered price did not reflect IJM's intrinsic value.
With EPF (20.52%) and PNB (13.5%) rejecting, a total of 34% of IJM shares were locked against the offer - making the 50% threshold virtually impossible to achieve mathematically.
In the final development before the deadline, IJM publicly denied Sunway's claims of prior negotiations through an "intermediary", reaffirming once again that the offer was unfair.
Today, 6 April 2026, is the deadline for Sunway to achieve acceptance exceeding the 50% voting share threshold by 5:00 PM.
With only ~13.7% acceptance as of the latest report, and both EPF and PNB (combined 34% of shares) having formally rejected, reaching the 50% threshold is mathematically impossible. Sunway itself has expressed willingness to walk away and no intention to raise the offer price.
The valuation gap between Sunway's offer price and IJM's true value was the core issue that derailed this deal:
| Valuer | IJM Share Valuation Range | vs RM3.15 Offer |
|---|---|---|
| M&A Securities (IJM Independent Adviser) | RM5.84 - RM6.48 | 46% - 51% Discount |
| RothschildCo Malaysia | RM4.80 - RM5.63 | 34% - 44% Discount |
| Sunway (Offer Price) | RM3.15 | - |
This difference meant Sunway was essentially offering a price worth half of what independent advisers considered IJM's fair value. For institutional shareholders like EPF and PNB, who are responsible for managing public funds, accepting an offer at such a steep discount was simply out of the question.
A VTO or Voluntary Takeover Offer is an offer by one company to purchase shares of another company from its shareholders on a voluntary basis. Unlike a mandatory takeover, shareholders are free to accept or reject the offer.
Sunway offered RM3.15 per IJM share, with 10% in cash and 90% in new Sunway shares priced at RM5.65 per share. The total offer was worth approximately RM11 billion.
Both institutions considered the RM3.15 price did not reflect IJM's intrinsic value. Independent advisers valued IJM shares at RM4.80 to RM6.48 - meaning Sunway's offer represented a 34% to 51% discount from fair value.
If the offer fails, all accepted IJM shares are returned to their holders. IJM continues operating independently and the share price adjusts according to market sentiment.
Tan Sri Jeffrey Cheah has stated that Sunway has given its best offer and is willing to walk away if it fails to reach 50% acceptance. There are no signals of a price increase.
MACC launched an investigation because the takeover involved public funds (EPF and PNB holdings). Sunway was cleared of wrongdoing, while investigations into certain individuals linked to IJM continue.
The Sunway-IJM merger would have created Malaysia's largest conglomerate in the property and construction sector. With the deal's failure, both companies continue operating independently in a rapidly growing market - particularly driven by data centre and infrastructure projects.
If the offer fails to reach the 50% threshold, it lapses and all accepted shares are returned. Sunway and IJM resume operating separately. IJM shareholders retain their full holdings.
The Sunway takeover saga of IJM is a landmark episode in Malaysian corporate history. The RM11 billion offer that appeared substantial on the surface ultimately failed due to a significant valuation gap - RM3.15 versus RM4.80 to RM6.48 as valued by independent advisers. The firm rejection by EPF and PNB, who collectively held 34% of IJM shares, was the final nail in the coffin for this offer.
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