“Sunway Bhd has proposed a cash-and-share acquisition of IJM Corporation valued at over RM11 billion, aimed at creating a larger construction and infrastructure group.”
Kuala Lumpur, 14th January 2026, 03.12pm – Sunway Bhd has unveiled plans to acquire IJM Corporation Bhd in a cash-and-share transaction valued at more than RM11 billion, a move that could reshape Malaysia’s construction and infrastructure landscape.
Under the proposed terms, IJM shareholders will receive RM315 in cash and 501 Sunway shares for every 1,000 IJM shares held, valuing the share component at approximately RM2,835. Upon completion, the enlarged group is expected to rival Gamuda Bhd, currently Malaysia’s largest construction company by revenue.
Sunway president Datuk Anuar Taib said the proposed acquisition is driven by the need to build scale amid rising investment flows into Malaysia, as shifting global economic dynamics position the country as a key investment destination.
“Given changes in the global environment, we expect increased investment activity in Malaysia. Scale is important as it enhances access to financing and strengthens execution capabilities,” he said at a briefing on Monday.
The offer represents a premium of 14.55% over IJM’s last traded price of RM2.75 per share prior to its trading suspension, and a 17.59% premium to its six-month volume-weighted average price of RM2.68.
Based on the RM11 billion valuation, IJM is valued at close to 12 times enterprise value and approximately 27 times trailing earnings.
The offer will become effective once Sunway secures more than 50% ownership of IJM, subject to the fulfilment of customary conditions. Sunway indicated it does not intend to maintain IJM’s listing if its shareholding reaches 75%, and will exercise compulsory acquisition rights should its ownership exceed 90%.
Sunway expects the transaction to be completed by the third quarter of 2026.
UBS AG has been appointed as international financial adviser, while Maybank Investment Bank is acting as Sunway’s principal adviser for the transaction.
