KUALA LUMPUR, 2 April 2026 – Sunway Group founder Tan Sri Jeffrey Cheah is calling on major government-linked investment companies (GLICs) to objectively assess Sunway Bhd’s takeover bid for IJM Corp Bhd, as growing resistance threatens to derail one of Malaysia’s most closely watched corporate deals.
Cheah, who controls a 59.4% stake in Sunway, emphasised that the RM3.15-per-share offer for IJM should be evaluated on commercial merit rather than external “noise,” particularly criticism circulating on social media.
GLICs Hold the Decisive Vote
The outcome of the proposed acquisition now hinges heavily on Malaysia’s largest institutional investors.
GLICs including the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), and Kumpulan Wang Persaraan (KWAP), collectively hold around 45% of IJM’s shares, effectively determining whether the deal succeeds.
However, momentum appears to be shifting against Sunway’s proposal. PNB, which owns about 13.3% of IJM, has already publicly rejected the offer, while other GLICs are reportedly leaning in the same direction.
Cheah warned that if all major institutional shareholders reject the deal, Sunway’s acquisition attempt would likely fail.
From Early Optimism to Mounting Resistance
Initial feedback from institutional investors had been encouraging, with Cheah noting that many viewed the offer as commercially sound when it was first presented in January.
However, sentiment shifted following:
- Social media backlash, including race-based criticism of the deal
- Regulatory scrutiny, after reports that the Malaysian Anti-Corruption Commission (MACC) was investigating IJM over governance concerns
These developments have introduced uncertainty, complicating what was initially seen as a straightforward strategic acquisition.
Strategic Rationale: Building a Stronger Entity
Sunway’s proposal, a mix of cash and shares, aims to create a larger, more competitive entity by integrating IJM’s infrastructure and construction assets.
Cheah argues that the merger would unlock operational synergies, pointing to Sunway’s stronger historical performance:
- Shareholder returns (2016–2025): Sunway +387% vs IJM -9%
- Construction margins: Sunway ~12% vs IJM ~4%
- Property development margins: Sunway ~27% vs IJM ~21%
He maintains that Sunway’s management expertise could enhance IJM’s profitability and long-term growth.
Political and Strategic Sensitivities Emerge
The deal has also drawn scrutiny due to the strategic nature of IJM’s assets, which include:
- Kuantan Port
- Major highways such as the West Coast Expressway and New Pantai Expressway
Critics have framed the transaction through a political and racial lens, raising concerns over control of national infrastructure, an issue Cheah has pushed back against, stressing that IJM is not a Bumiputera-controlled company.
Deal Structure and Acceptance Threshold
Sunway has made it clear that the current offer is final.
Cheah stated that:
- The RM3.15 price will not be increased
- The cash component (10%) is unlikely to change
- If the minimum acceptance threshold of 50% plus one share is not achieved, the deal will be withdrawn entirely
As of now, Sunway has secured roughly 20% acceptance, with expectations this could rise to 25% in the near term.
IJM shareholders have until April 6, 2026 to make their decision.
Asian Investor Perspective: Governance vs Value
For investors, the unfolding situation reflects a broader theme in Malaysia’s corporate landscape:
strategic deals are increasingly shaped not just by valuation, but by governance, perception, and political sensitivity.
Key considerations include:
- Institutional influence: GLICs remain decisive power brokers in major corporate transactions
- Non-financial risks: Public sentiment and regulatory scrutiny can materially impact deal outcomes
- Value vs control: Even financially compelling offers may face resistance if strategic assets are involved
Charts & Levels (Deal Snapshot)
- Offer Price: RM3.15 per IJM share
- Acceptance Level: ~20% currently
- Threshold for Success: 50% + 1 share
- Key Swing Factor: GLIC participation
Outlook: A Defining Test for Malaysia’s Deal Landscape
The Sunway-IJM deal is shaping up to be a critical test of Malaysia’s corporate and investment ecosystem.
If successful, it could signal a new wave of consolidation and private-sector-led transformation.
If rejected, it may reinforce the influence of institutional and political considerations in shaping corporate outcomes.
For now, the decision lies with a handful of powerful shareholders, and the clock is ticking.
