Sunway’s $2.8 Billion Bid at Risk as IJM Board Urges Rejection

A $2.8 billion (11 billion ringgit) takeover bid by Malaysian construction firm Sunway Bhd. for rival IJM Corp Bhd. faces collapse after IJM’s board and an independent adviser recommended shareholders reject the offer. The rejection stems from valuation concerns, with IJM’s leadership arguing Sunway’s bid undervalues the company’s assets and growth potential amid a competitive infrastructure market. Analysts remain divided, with some backing IJM’s stance on long-term value, while others warn rejecting the deal could expose shareholders to short-term volatility in Malaysia’s construction sector. The bid, announced earlier this year, marks Sunway’s aggressive push to consolidate Malaysia’s fragmented construction industry, but regulatory and shareholder hurdles now threaten the deal’s viability. If rejected, the failure could reshape industry dynamics, potentially prompting Sunway to pursue alternative expansion strategies or smaller acquisitions.