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“Sunway founder Jeffrey Cheah urges IJM shareholders and GLICs to assess the RM3.15 takeover offer based on fundamentals as acceptance levels reach 20%.”
Kuala Lumpur, 2nd April 2026, 02.30pm – Tan Sri Jeffrey Cheah Fook Ling, founder and controlling shareholder of Sunway Bhd (KL:SUNWAY), has called on IJM Corp Bhd (KL:IJM) shareholders — particularly government-linked investment companies (GLICs) — to evaluate Sunway’s takeover proposal based on commercial fundamentals rather than external sentiment.
Cheah, who holds about 59.4% of Sunway, said institutional investors should remain focused on the strategic and financial merits of the RM3.15 per share offer instead of being influenced by what he described as “noise” surrounding the deal.
GLICs hold key voting power
Major institutional investors including the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) collectively control about 45% of IJM. Their decision is widely seen as crucial to the success of the proposed acquisition.
Cheah acknowledged that the deal could face challenges if these funds choose not to participate.
In an interview with The Edge, he expressed disappointment that racial narratives circulating online may have affected sentiment toward the transaction, despite what he described as initially positive feedback from institutional shareholders following the announcement of the offer in January 2026.
Sentiment shifted after social media criticism
According to Cheah, early discussions with institutional investors suggested support for the deal based on its commercial rationale. However, sentiment reportedly shifted after social media criticism emerged, including commentary framing the transaction along racial lines, as well as news reports regarding governance investigations involving IJM.
Cheah noted that these developments may have complicated the decision-making environment for major shareholders.
PNB rejects offer while others remain undecided
PNB, which owns approximately 13.3% of IJM, has already announced it will not accept the offer. Other major shareholders have yet to publicly confirm their positions, although market sources indicate they could adopt a similar stance.
IJM shareholders have until April 6 to decide on the offer.
When asked whether Sunway might revise the offer price or increase the 10% cash component, Cheah indicated this would be unlikely.
He reiterated that the current proposal represents Sunway’s best and final offer, adding that the company may withdraw if acceptance levels are insufficient.
Sunway targeting controlling stake
While full acceptance appears unlikely, Cheah said Sunway remains focused on securing at least 50% plus one share, which would allow the group to gain effective control of IJM. Under the offer terms, failure to meet this threshold would result in the proposal being withdrawn.
He also encouraged remaining shareholders — including retail investors and insurance institutions — to consider the long-term benefits of becoming part of a larger integrated group.
Sunway highlights stronger historical returns
To support the proposal, Cheah pointed to Sunway’s financial performance over the past decade. Between 2016 and 2025, Sunway reportedly delivered shareholder returns of approximately 387%, compared with a negative return of about 9% for IJM over the same period.
He also highlighted differences in operational performance:
- Sunway construction pre-tax margins: about 12%
- IJM construction pre-tax margins: about 4%
- Sunway property development margins: 27%
- IJM property development margins: 21%
Cheah expressed confidence that Sunway could improve IJM’s profitability and operational efficiency if the acquisition proceeds.
Strategic asset concerns raised
Sunway’s privatisation proposal has also attracted public debate due to IJM’s ownership of strategic infrastructure assets, including Kuantan Port and several major highways such as the West Coast Expressway and New Pantai Expressway.
Some critics have framed the deal as involving control of national infrastructure assets, although IJM itself is not officially classified as a Bumiputera-controlled company.
Offer structure allows shareholders to remain invested
Cheah emphasised that the cash-and-shares structure of the offer allows IJM shareholders to remain invested through equity participation in the enlarged Sunway group, enabling them to benefit from potential future growth.
He stressed that the intention of the deal is not to displace institutional investors but to allow them to participate in a stronger combined entity.
Current acceptance levels
Sunway executives indicated that the company has so far secured about 20% acceptance from IJM shareholders and expects participation to rise to around 25% in the near term.
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