Sunway to Acquire IJM for RM11 Billion, Aiming to Create One of Malaysia’s Largest Property and Construction Groups
- Erik & Aya
- Feb 4
- 3 min read
Photo is for illustrative purposes only. Photo credit: Precondo CA (Unsplash)
As 2026 approaches, a major merger between two large Malaysian companies has begun to take shape.
Sunway, well known in the property and industrial sectors, has announced a plan to acquire all shares of major construction firm IJM for approximately RM11 billion.
Through this acquisition, Sunway aims to become one of Malaysia’s largest integrated groups combining both property and construction businesses.
Acquisition Structure: “Cash + New Shares”
The acquisition will be carried out through a combination of cash and new Sunway shares.
10% in cash
90% in newly issued Sunway shares
What IJM Shareholders Will Receive
For each IJM share held, shareholders will receive:
Cash: 31.5 sen
New Sunway shares (valued at RM5.65 per share)
For example, if an investor holds 1,000 IJM shares, they will receive:
Cash: approximately RM315
Sunway shares: approximately 501 shares
Offer Price Above Market Levels
The offer price is higher than the current market price.
It represents a premium of about 14.6% over IJM’s latest share price of RM2.75
Compared with the volume-weighted average market prices over the past 5 days to 1 year, the premium ranges from approximately 17.6% to 28%
As a result, the offer is considered relatively attractive for shareholders.
Possible Delisting
If, after the acquisition, IJM no longer meets the minimum public shareholding requirement, Sunway has stated that it will not take steps to restore the required shareholding level.
In such a case, Sunway reserves the right to proceed with the delisting of IJM at an appropriate time, subject to regulatory requirements.
Shareholder Approval Required
To proceed with the acquisition, approval at Sunway’s shareholders’ meeting is required.
On the day of the announcement, trading in the shares of both Sunway and IJM was temporarily suspended.Trading is scheduled to resume at 9:00 a.m. the following day.(Before the announcement, Sunway’s share price stood at RM5.60.)
Management Comment: “One Plus One Will Be More Than Two”
At a press conference, Sunway’s Chief Executive Officer (CEO) said that:
After the merger, the group will rank among the largest in Malaysia in terms of revenue and assets
The company’s business scale, financial strength, and competitiveness will be significantly enhanced
By sharing talent and expertise, the group will be able to secure more large-scale projects
He also explained that while IJM will become a wholly owned subsidiary of Sunway, it will continue to operate as an independent company.
No Major Organizational Changes in the Short Term
Sunway will establish an integration committee to promote initiatives such as:
Joint procurement
Improving operational efficiency
Sharing resources
However, the company stated that there are no plans to make major changes to IJM’s business structure in the short term.
Combined, the two companies will have:
Land bank: 5,685 acres
Total development value: RM118.1 billion
No Plans for Staff Reductions
At present, there are no plans to lay off or reduce IJM employees.
If personnel adjustments become necessary in the future due to business integration, these will be carried out with the goal of improving efficiency and sharing knowledge, following established guidelines.
Acquisition Expected to Complete in Q3 2026
According to Sunway’s Chief Financial Officer, if all approvals proceed smoothly, the acquisition is expected to be completed in the third quarter of 2026.
The CFO also clarified that this acquisition is separate from the listing of Sunway Medical (the healthcare division).Shareholders of IJM who accept the offer will not be entitled to Sunway Medical shares distributed as a dividend.
Four-Year Rumors Become Reality
Rumors of Sunway acquiring IJM have circulated repeatedly over the past four years.
In 2021, Sunway temporarily held about 5% of IJM shares, but the merger did not materialize, and these shares were later sold.
Since November 2024, acquisition speculation has intensified again, and now the plan has been formally announced.
IJM’s Shareholder Structure and Background
Currently, IJM’s largest shareholders are mainly government-linked investment institutions, including:
Employees Provident Fund (EPF)
Amanah Saham Nasional Berhad (ASNB)
Kumpulan Wang Persaraan (KWAP)
Because the shareholder base is widely dispersed, it is expected that there will be little strong opposition as long as the offer price is considered reasonable.
A Historic Restructuring in Malaysia’s Property and Construction Sector
The merger between Sunway and IJM could represent a historic large-scale restructuring in Malaysia’s property and construction industry.
Going forward, shareholder decisions and regulatory approvals are expected to be the key points to watch.
👉 At Tabiniko, we provide comprehensive support for life in Malaysia, from property investment to relocation, education-related relocation, and VISA assistance. Feel free to contact us for consultation.
📚 Sources
e南洋”双威出价110亿全购IJM 誓言打造产业建筑综合霸主”2026年1月12日
https://www.enanyang.my/news/20260112/Finance/1131686
