“An economist urges postponement of Sunway’s RM11 billion takeover of IJM, citing valuation gaps, governance issues and national interest concerns as regulators face calls for scrutiny.”
Kuala Lumpur, 09th February 2026, 12.00pm – An economist has urged that Sunway Bhd’s proposed RM11 billion acquisition of IJM Corp Bhd be postponed, citing concerns over governance, valuation and potential implications for national interests.
Professor Barjoyai Bardai said the Malaysian Anti-Corruption Commission’s (MACC) ongoing investigation has heightened questions surrounding the structure of the conditional voluntary takeover (VTO) offer and the timing of its implementation.
Sunway had proposed a conditional VTO to acquire 3.51 billion IJM shares at RM3.15 per share. However, Barjoyai noted that several research houses, including Kenanga Research, have described the offer price as unattractive and below IJM’s intrinsic value.
Kenanga Research previously set IJM’s target price at RM3.40, suggesting the proposed offer undervalues the company. When adjusted against Sunway’s target price of RM4.73, the implied value to IJM shareholders could fall to around RM2.69, highlighting what Barjoyai described as an imbalance in value exchange between shareholders of both companies.
He called for the takeover process to be deferred or restructured until a comprehensive and independent assessment is completed, stressing the importance of maintaining market confidence and safeguarding national interests.
The proposed acquisition has also drawn attention following reports of a MACC probe into alleged corporate governance irregularities and overseas assets estimated at RM2.5 billion, as well as potential money laundering concerns linked to the transaction.
Barjoyai said public concerns were understandable given IJM’s involvement in several strategic sectors, including public transport infrastructure such as Penang’s LRT Mutiara project, the Kuantan port, energy facilities, rail networks and large-scale data centres.
Although IJM is not formally classified as a strategic national asset, he noted that significant shareholdings by institutions such as the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) give the company broader public interest significance.
He also called on the Securities Commission Malaysia (SC) to closely monitor the proposed transaction under its mandate to ensure transparency, fair valuation and proper management of potential conflicts of interest.
According to Barjoyai, a detailed regulatory review would represent standard governance practice rather than political interference, especially amid concerns over pricing, market sentiment and the structure of the deal.
Separately, the Malay Consultative Council (MPM) PuTERA35 secretariat head Syed Zikri Shahabudin said any large-scale corporate takeover involving national infrastructure interests must undergo thorough and transparent scrutiny. He stressed that changes in ownership involving entities linked to strategic projects and institutional investors such as PNB, EPF, Retirement Fund Incorporated and Tabung Haji should prioritise public interest and sound governance.
Syed Zikri added that an independent review by regulators and relevant authorities would help ensure there are no conflicts of interest, abuse of power or market manipulation linked to the transaction.
Meanwhile, Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal also raised questions about transparency, asking whether the proposed deal involved a closed or pre-arranged negotiation and who stood to benefit most from the acquisition. He similarly urged the Securities Commission to monitor the process closely.
IJM shareholders have until 5pm on April 6 to decide whether to accept Sunway’s takeover offer.
