KUALA LUMPUR: IJM Corporation Bhd said any discussions Sunway Bhd may have had with shareholders before the announcement of the voluntary takeover offer (VTO) were conducted without the knowledge or involvement of its board of directors or management.
In a statement, IJM said the clarification followed remarks by Sunway founder and 59.4 per cent shareholder, Tan Sri Jeffrey Cheah Fook Ling, who revealed that initial discussions with these institutions had been encouraging.
Cheah said when Sunway first tabled its proposal in early January, feedback from the government-linked investment companies (GLICs) was broadly positive, with many acknowledging the commercial rationale behind the deal.
IJM said that any restriction on its participation in certain business segments or contracts could raise concerns and may not be in the best interests of its remaining shareholders.
It said Cheah’s remarks highlighted IJM’s strength in civil construction and aimed to bid for the Mass Rapid Transit (MRT) or the Penang Light Rail Transit (LRT), while Sunway focused on a data centre project, suggesting a potential delineation of roles between the two groups.
Hence, IJM reiterated its call for shareholders to refer to the Independent Advice Circular dated March 13, 2026, in which the Independent Adviser, M&A Securities Sdn Bhd, concluded that the offer “is unfair and unreasonable”.
“The board reiterated its recommendation that shareholders reject the offer. The offer must also be assessed in its proper strategic context,” it said.
IJM said that it is at a different stage of its investment cycle, with key assets such as infrastructure concessions moving from development into operational phases.
It emphasised that comparisons based only on current margins or short-term earnings do not fully reflect their value or future upside.
Shareholders are therefore advised to assess the Sunway offer based on the Independent Advice Circular, the company’s official announcements, and IJM’s underlying value, strategic position and prospects.
On January 12, Sunway proposed a conditional voluntary takeover offer to acquire the entire 3.51 billion shares in IJM at an offer price of RM3.15 per share.
On March 16, Permodalan Nasional Bhd decided not to accept the VTO for its 13.5 per cent stake by Sunway. – BERNAMA
