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FRIDAY | MAR 27, 2026

Sunway sets sights on RM50b giant with takeover bid for IJM Corp

o Overwhelming 99.97% of Sunway shareholders present at EGM vote in favour of proposed acquisition

Cheah speaking at a press conference on Sunway’s proposed acquisition of IJM Corp after the EGM yesterday. Next to him is Idris. – BE R NAMA PIC

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

has been earmarked for branding and marketing initiatives, while RM6 million (6.7%) will support geographic expansion. The group has also allocated RM4 million (4.4%) for IT systems and infrastructure, RM6 million (6.7%) for workforce ex pansion, RM4 million (4.4%) for working capital, and RM6.5 million (7.2%) for listing expenses. The IPO entails the issuance of 200 million new shares at an offer price of 45 sen each, implying a market capitalisation of RM450 million based on an enlarged share capital of one billion shares. COO Charles Lim said travel demand is expected to remain resilient, with travellers opting to shift destinations rather than cancel trips amid Middle Cheah said he is confident IJM Corp shareholders will benefit from the deal, citing Sunway’s track record in retaining talent following acqui sitions. “We just took over MCL Singapore six months ago. All the staff have decided to stay, because we look after our staff and motivate them much better than others.” Integrating IJM’s workforce would recommended that shareholders reject the offer, citing that it undervalues the company. M&A Securities estimated the fair value of IJM Corp shares to be between RM5.84 and RM6.48. Major shareholders, including Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF), have shown reluctance to support Sunway’s offer. Sunway said that it would proceed with the bid to acquire IJM Corp and, if successful, the acquisition would allow Sunway to merge with IJM, forming a construction giant with combined assets of RM57.8 billion, positioning it among Malaysia’s largest listed property and con struction groups. At the EGM yesterday, 99.97% of Sunway shareholders present voted in favour of the proposal. “I’m no crystal ball, but if you look at what Sunway Healthcare Bhd has achieved, the direction is evident. We have grown our market cap from RM16.7 billion at listing to RM26 billion today – that’s the impact of the Sunway brand,” Cheah said. IJM Corp has a market capitalisation of RM8.64 billion as of yesterday’s market close.

KUALA LUMPUR: Sunway Group expects the enlarged entity from its proposed takeover of IJM Corpo ration Bhd to achieve a market capitalisation of RM50 billion on the back of its track record and opera tional strengths. Sunway Group founder and co chairman Tan Sri Jeffrey Cheah said the combined entity would have a theoretical market capitalisation of RM45 billion with the potential for further upside. “Yeah, the theoretical combined market cap is RM45 billion, but I believe with our strong brand and good management, I think it will go up to at least RM50 billion,” he told reporters after an extraordinary general meeting (EGM) held in relation to the conditional takeover offer for IJM Corp yesterday. In January, Sunway unveiled a proposal to acquire IJM Corp through a cash-and-share arrangement that values the group at RM3.15 per share, or roughly RM11 billion. The offer is contingent on securing acceptances exceeding 50% plus one share. M&A Securities Sdn Bhd, however, noted that IJM shareholders have the option to exit via the open market rather than exchange their stakes for Sunway shares, pointing out that accepting the deal would effectively make them minority shareholders in Sunway. However, the IJM Corp board, advised by M&A Securities, has Destinations Group Bhd, a business to-business outbound travel ex perience curator, plans to raise approximately RM90 million from its ACE Market initial public offering (IPO) to expand its travel agent network, strengthen brand presence, and support its expansion into East Malaysia and Singapore. Of the total proceeds, RM50 million (55.6%) will be allocated towards establishing a new headquarters in Kuala Lumpur city centre to accommodate operational growth. The proposed facility will offer at least 35,000 sq ft of net floor area, up from the current 20,869 sq ft across its existing offices. An additional RM13.5 million (15%)

early inventory booking. Of the total IPO shares, 50 million will be offered to the Malaysian public, 35 million allocated to eligible personnel, 90 million placed with institutional and selected investors, and 25 million reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry. A further 100 million offer-for-sale shares will also be placed with approved Bumiputera investors. Applications for the IPO will close on April 6 with Golden Destinations’ listing on the ACE Market scheduled for April 16. UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO. - by HAYATUN RAZAK conditional voluntary takeover of IJM Corp, it has now cleared a key hurdle for the exercise. In a statement, the investment bank said the offer now hinges on the acceptance condition, which must be met by April 6, the first closing date and the 60th day from the posting date. “If the acceptance condition is not met by the first closing date, the offer will lapse, and all shares tendered will be returned to shareholders,” it said. As of yesterday, valid acceptances amounted to 436.7 million IJM Corp shares, representing 12.5% of the company, with a further 40.9 million shares, or about 1.2%, received but pending verification. In the statement, Maybank IB said that Sunway held no shares on the posting date and had not acquired any additional shares outside the offer during the period.

Managing director Mita Lim noted that the group typically secures group tour seats about a year in advance, with capacity booked through December and, for certain airlines such as AirAsia, up to March 2027. This provides visibility on costs and supports pricing stability despite fluctuations in fuel prices. He added that the group’s business model is anchored on a collaborative ecosystem with its network of 848 travel agents, who drive sales while the company provides inventory, pricing and systems. The group expects to maintain overall margins of about 4% to 5%, while its core group tour segment can deliver higher margins of 20% to 25%, supported by dynamic pricing and been cited at higher levels, its realisation would depend on the successful execution of underlying strategies over time and prevailing market conditions. IJM’s market performance has not fully reflected this implied valuation,” Cheah said. Sunway co-chairman Tan Sri Idris Jala said the integration would be carried out in three phases – completion of the acquisition by year-end, followed by a transition phase to identify revenue and cost synergies, and a final transformation phase. “If you put the two together, we immediately are among the top 10 highest market cap companies in Malaysia. Detailed execution would be key to creating value for share holders of both companies.” Meanwhile, Maybank Investment Bank Bhd (Maybank IB) said with Sunway shareholders approving the

East tensions and rising oil prices. “Demand has shifted back towards Asia and East Asia, including China, which is a more profitable segment and a key revenue contributor,” he said at the prospectus launch. He added that higher fuel sur charges are likely to have a limited impact on the group, given that its business is largely driven by pre booked group tours. “Fuel surcharge increases do have some impact, particularly for FIT tickets where flights are booked separately, as airline prices are rising. However, our core focus on group tours allows us to secure airline seats in advance under contractual arrangements, mitigating the overall impact,” Lim said. be a key priority. “We’ll try to win over IJM’s staff; they want to join Sunway,“ he said. Cheah defended its RM3.15 per share offer, saying it provides shareholders with immediate value and an opportunity to participate in long-term growth through equity. He noted that the offer represents a premium to IJM Corp’s current market price and reflects its long term performance. “Sunway has delivered total shareholder returns of about 387% over the past decade, compared with a 9% decline for IJM,” Cheah said. He added that accepting shares should be viewed as an opportunity to reposition as one of the strongest performing platforms in the sector, with a strong, proven track record that has “consistently delivered growth and superior shareholder returns”. “While IJM’s intrinsic value has

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