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“EPF declines Sunway’s RM3.15 offer for IJM shares, citing intrinsic value concerns as institutional investors assess the proposed takeover.”
Kuala Lumpur, 30th March 2026, 01.55pm – Employees Provident Fund (EPF), the largest shareholder of IJM Corporation Berhad, has decided not to accept a takeover offer from Sunway Berhad after determining that the offer price does not reflect IJM’s intrinsic value.
According to sources familiar with the matter, EPF’s investment committee recently reviewed the proposal and concluded that the offer undervalued IJM’s long-term growth potential and asset monetisation opportunities.
Offer seen as undervaluing IJM’s growth prospects
Sources indicated that the committee was of the view that the offer did not adequately reflect IJM’s underlying value, including the potential to unlock value from its assets and ongoing business segments.
They also noted that as IJM’s single largest shareholder, EPF believes it may be able to derive greater long-term value from maintaining its investment rather than accepting the current offer.
Institutional investors taking similar stance
The development follows a similar decision by Permodalan Nasional Berhad (PNB), which holds about 13.3% in IJM. PNB previously announced that it would not accept Sunway’s offer based on its own assessment of IJM’s valuation and future upside potential.
Other institutional investors with interests in IJM include Lembaga Tabung Haji and Retirement Fund Incorporated (KWAP).
Sunway shareholders approve acquisition proposal
Last week, Sunway shareholders approved the proposed acquisition. EPF abstained from voting at Sunway’s extraordinary general meeting as the fund holds shares in both companies.
On Jan 12, Sunway announced a mixed cash-and-share offer valued at RM3.15 per IJM share. The proposal includes a 10% cash component, with the remaining consideration to be satisfied through new Sunway shares issued at RM5.65 each.
The offer is conditional upon Sunway securing more than 50% ownership in IJM. As of the latest update, acceptance levels were reported at just under 13%, with the first closing date set for April 6. The offer period may be extended as Sunway has up to 60 days from the issuance of the offer documents to complete the exercise.
Independent valuations indicate higher price range
Following the offer, IJM commissioned two independent valuations which indicated values significantly above Sunway’s offer price.
M&A Securities Sdn Bhd valued IJM shares at between RM5.84 and RM6.48, while Rothschild & Co Malaysia Sdn Bhd assessed the company’s value at between RM4.80 and RM5.63.
IJM exploring value unlocking initiatives
IJM group chief executive officer Lee Chun Fai had previously indicated the group is exploring several strategic initiatives, including the potential listing of its construction and highway businesses, as well as possible divestments involving its India toll road concessions.
As at end-2025, IJM reported an order book of RM15.3 billion and cash reserves of RM2.3 billion. However, the company’s share price performance has lagged behind some peers in the construction sector such as Gamuda Berhad and Sunway Construction Group Berhad.
Sunway defends offer price
Sunway has defended its RM3.15 offer, stating that it is broadly in line with the weighted average target price of RM3.24 based on research coverage by 14 independent research houses.
The group also noted that the offer implies a price-to-earnings multiple of approximately 27 times IJM’s earnings for the financial year ended March 2025.
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