Sunway Group’s takeover bid for IJM Corp officially lapsed after securing only 33% support. It failed to reach the required 50% threshold of voting shares by the deadline.

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IJM shares dipped in early trade following the announcement. Analysts suggest the failed deal allows both Sunway and IJM to refocus on independent growth strategies and core businesses.

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Sunway officially stated it respects the decision made by IJM shareholders. While the bid failed, Sunway noted that 99.27% of its own shareholders had overwhelmingly supported the strategic merger.

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Sunway co-chairman Idris Jala clarified that the offer was purely commercial. He rejected claims that the group was cash-strapped or that the bid was influenced by racial or political motives.

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IJM CEO Datuk Lee Chun Fai welcomed the conclusion, stating the group will now focus on its independent growth strategy. The board had previously advised shareholders that the offer was unfair.

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1. What was the value of Sunway’s offer?

Sunway offered RM3.15 per share, which was a combination of 10% cash and 90% new Sunway shares issued at an exchange price of RM5.65.

2. Who are the major shareholders of IJM Corp?

The largest shareholder is the Employees Provident Fund (EPF) with 16.8%, followed by Permodalan Nasional Berhad (PNB), which held 13.5% and decided not to accept the offer.

3. Why did the deal fail to reach 50%?

The deal failed primarily because major institutional investors and the IJM board viewed the offer as not fair and not reasonable, leading to low overall acceptance.

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