Sunway's IJM takeover bid: The final countdown [WATCH]

KUALA LUMPUR: The RM11 billion voluntary takeover offer for IJM Corp Bhd by Sunway Bhd will reach its critical first closing deadline at 5pm today.

Sunway is offering RM3.15 per IJM share, settled via 10 per cent cash or 31.5 sen each and 90 per cent new Sunway shares at an issue price of RM5.65.

The offer is conditional on Sunway receiving valid acceptances for more than 50 per cent of IJM's voting shares.

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If this threshold is not met by the deadline, the offer will lapse. As of late March, valid acceptances stood at only 13.7 per cent (including shares already held or verified), significantly below the 50 per cent requirement.

Key Stakeholder Positions

• Sunway: Chairman Tan Sri Jeffrey Cheah has explicitly stated this is the "best and final" offer. He has signalled that Sunway is prepared to walk away if the deal is not accepted by today's deadline.

• IJM: The board and management have reaffirmed their rejection of the bid, arguing it significantly undervalues IJM's long-term growth potential and "future upside".

• Institutional resistance: Major government-linked investment companies including the Employees Provident Fund, Permodalan Nasional Bhd and Kumpulan Wang Persaraan or KWAP reportedly declined or rejected the offer. Together, these institutions hold about 45 per cent of IJM shares.

Regulatory Update

The Malaysian Anti-Corruption Commission recently completed its probe into the takeover bid and submitted findings to the Attorney General's Chambers, though Sunway claims it has received "clearance".

Immediate Implications

If the 50 per cent acceptance threshold is not reached by 5pm today, all accepted shares will be returned to IJM holders, and the merger attempt, intended to create a "national champion" in construction and property, will fail.

The RM11 billion voluntary takeover offer for IJM Corp Bhd by Sunway Bhd will reach its critical first closing deadline at 5pm today.

- NST