IJM deal collapses, but Sunway keeps growth ambitions intact

 

SUNWAY’S attempt to acquire IJM Corporation Bhd has fallen through after failing to secure enough backing from shareholders.

With acceptances reaching only 33.43%—well short of the required majority threshold—the offer has now been withdrawn.

Despite the setback, this is unlikely to deter Sunway’s growth strategy. The group is expected to continue exploring both organic expansion and acquisitions, actively seeking opportunities in development land, investment assets, as well as companies with strong strategic value.

“Although the merger did not materialise, Sunway’s organic growth is likely to underpin near-term earnings,” said RHB.

This is via Sunway Construction’s more aggressive orderbook replenishment target of MYR6 bil, higher new launches and sales target (MYR4.2 bil from MYR3.8 bil in 2025), Sunway Healthcare’s expansion, as well as the recent acquisition of MCL Land in Singapore. 

Sunway’s solid earnings track record (from a core net profit of MYR461 mil in 2020 to MYR1.16 bil in 2025) reinforces RHB’s expectation on management’s future execution capabilities. 

“Despite the disappointment this round, we think management will still pursue inorganic growth opportunities,” said RHB.

Sunway’s offer to take over IJM does indicate its appetite to acquire any company that holds strategic assets worth up to MYR11-12 bil, and the group is able to fund with a cash pile of MYR1.1-1.2 bil. 

Apart from companies with valuable assets, acquisition opportunities may also be landbank for development or investment properties. — Focus Malaysia