On January 12, 2026, Malaysian corporate headlines exploded. Sunway Berhad made a bold RM11 billion takeover offer for IJM Corporation Berhad — a move that instantly grabbed the market’s attention.
But before the hype could even settle, another shock hit. Authorities announced an investigation involving individuals within IJM linked to alleged money laundering. Investor confidence shook. IJM’s reputation took a hit. Its stock price dipped.
And yet… Sunway didn’t back down.
💰 The Offer That Sparked Everything
Sunway offered RM3.15 per IJM share — a premium above the market price at the time. Major research firms like JPMorgan Chase and CIMB Securities had valued IJM between RM2.60 and RM3.50.
Sounds fair, right?
Not quite.
IJM’s independent advisors, including Rothschild & Co Malaysia, estimated its true value between RM4.80 and RM6.48 per share — almost DOUBLE Sunway’s offer.
So why the massive gap?
Because many believe IJM has been seriously undervalued by the market.
🏗️ IJM Isn’t Just Another Construction Company
Here’s what most people miss:
IJM owns highways, ports, and massive land banks — including strategic assets like Kuantan Port. These are long-term, income-generating assets. Think of them as “cash cows” that keep printing money for decades.
This isn’t just about construction. This is about infrastructure dominance.
🤔 Why Did Sunway Only Offer 10% Cash?
Here’s where things get interesting.
Sunway structured the deal as:
- 10% cash
- 90% in Sunway shares
At first glance, critics questioned: “Is Sunway short on cash?”
Actually, no.
Sunway reportedly had around RM6.7 billion in cash, compared to IJM’s RM2.2 billion. So why not just pay cash?
👉 Two key reasons:
1. Share the upside
Over the past decade, Sunway delivered around 387% returns, while IJM recorded -9%. Sunway wanted IJM shareholders to ride their growth wave.
2. Protect cash flow
Sunway carries about RM12.4 billion in debt. Paying large amounts in cash would increase borrowing and financial risk. Using shares as currency helps them expand without choking future projects.
Smart move… or risky strategy?
🚀 Why Sunway Wanted IJM So Badly
This wasn’t about IJM’s current performance.
It was about synergy + future dominance.
Sunway is known for transforming land into thriving ecosystems — think integrated townships, healthcare, education, and retail hubs.
Now imagine combining that expertise with IJM’s:
- Highways 🛣️
- Ports 🚢
- Strategic infrastructure assets
This could have created a Malaysian mega-conglomerate capable of competing globally.
🏦 The Real Power Players: GLICs
Here’s where the plot thickens.
Major IJM shareholders include:
- Employees Provident Fund (17%)
- Permodalan Nasional Berhad (13%)
- Kumpulan Wang Persaraan (9%)
These government-linked institutions (GLICs) hold serious influence.
Rumors even surfaced about “hidden hands” influencing the rejection — though nothing has been proven.
❌ The Final Verdict: Deal Rejected
On April 6, 2026, Sunway officially announced:
They failed to secure majority approval (50% + 1 share).
The deal was dead.
🇲🇾 What This Means for Malaysia
This isn’t just a corporate story — it’s bigger than that.
1. Sunway loses a golden expansion opportunity
They now need to find new ways to grow strategically.
2. Pressure is now on IJM
After rejecting a premium offer, IJM must prove it’s worth more.
At the time of writing:
- IJM share price: RM2.37
- Sunway offer: RM3.15
That’s a big gap.
If IJM fails to deliver stronger performance, investors — including everyday Malaysians via EPF — may start asking tough questions.
💭 So… Was This the Right Decision?
Did GLICs protect long-term value?
Or did they just walk away from a billion-ringgit opportunity?
This is a classic battle between:
👉 Market price vs intrinsic value
👉 Short-term gains vs long-term vision
What do YOU think?
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