MALAYSIA’S largest retirement fund has declined a takeover offer by Sunway Bhd for its stake in IJM Corp Bhd, dealing a further setback to the proposed acquisition as institutional resistance grows.
The Employees Provident Fund, which holds a 20.52 per cent stake in IJM, becomes the second major government-linked investor to reject the bid, following Permodalan Nasional Bhd.
PNB had earlier announced on March 16 that it would not accept the offer, stating that IJM’s intrinsic value and future growth prospects outweigh the terms proposed, particularly when benchmarked against Sunway’s share valuation.
Other significant shareholders in IJM include Kumpulan Wang Persaraan Diperbadankan with 9.26 per cent and Lembaga Tabung Haji with 1.41 per cent, adding weight to the outcome of the offer.
New Straits Times reported today that an independent advisory circular issued to shareholders by M&A Securities Sdn Bhd concluded that the proposal was neither fair nor reasonable, recommending that investors reject the offer outright.
Sunway had proposed to acquire IJM at RM3.15 per share through a combination of cash and share exchange, with 10 per cent payable in cash and the remainder in Sunway shares priced at RM5.65.
Although Sunway shareholders have approved the transaction, EPF abstained from voting due to its cross-holdings in both companies.
The offer remains conditional upon Sunway securing more than 50 per cent ownership of IJM.
However, acceptances currently stand at just under 13 per cent, with the initial closing date set for April 6, leaving uncertainty over whether the threshold can be met.
IJM’s fundamentals have also been cited as a reason for investor reluctance.
The group reported an order book of RM15.3 billion as of end-December 2025 and cash reserves of RM2.3 billion, even as its share performance has lagged behind peers such as Gamuda Bhd and Sunway Construction Bhd.
Independent valuations commissioned by IJM further reinforced concerns over the offer price. M&A Securities placed the company’s fair value between RM5.84 and RM6.48 per share, while Rothschild & Co Malaysia Sdn Bhd estimated a range of RM4.80 to RM5.63.
With key institutional shareholders holding firm and valuation gaps remaining significant, the proposed takeover faces mounting challenges as the deadline approaches. - March 30, 2026
