This article first appeared in The Edge Malaysia Weekly on March 23, 2026 - March 29, 2026

SUNWAY Bhd (KL:SUNWAY) is understood to be mulling a revised offer for IJM Corp Bhd (KL:IJM), after its initial offer drew a lukewarm response, sources familiar with the matter tell The Edge.

When asked about the possibility of Sunway revising the offer on the sidelines of the Sunway Healthcare Holdings Bhd (KL:SUNMED) initial public offering (IPO) last Wednesday, Sunway executive chairman and non-independent executive director Tan Sri Jeffrey Cheah says, “I don’t want to answer that now… Come to our EGM next week.”

Other directors of Sunway could not be reached for comment. One source, who is not part of the group but is well connected, says he understands a revised offer is being considered but declines to comment further.

Sunway is scheduled to hold its extraordinary general meeting (EGM) on March 26 to vote on the proposed takeover offer to acquire IJM for RM11 billion, or RM3.15 per share — 31.5 sen or 10% in cash, and the remaining 90% or RM2.835 via the issue of Sunway shares at RM5.65 per share, or 501 Sunway shares for every 1,000 IJM shares held.

Sunway’s announcement to Bursa Malaysia on the EGM, in which it describes the offer, mentions that the proposed offer is “subject to adjustments”.

While details on a new offer by Sunway are uncertain, market watchers suggest there may be an improvement to the cash portion of the offer.

Last week, in an email response to questions from The Edge on its rejection of Sunway’s offer, Permodalan Nasional Bhd (PNB), which has a 13.3% stake in IJM via its various funds, says, “Our considerations include several factors, such as our estimation of the underlying intrinsic value of IJM shares relative to the offer price, the limited cash component of the offer and the estimated value upside of shares to be issued relative to the issue price. Consideration was also given to IJM’s dividend outlook and long-term value creation potential.

“PNB wishes to also highlight that IJM’s market valuation has, for a considerable period, not reflected the company’s underlying value. Accordingly, irrespective of the outcome of the voluntary takeover offer (VTO), we expect the board and management of IJM to prioritise efforts to crystallise this value for the benefit of all shareholders,” PNB says.

PNB is IJM’s second largest shareholder after the Employees Provident Fund, which has 20.52% equity interest.

The offer by Sunway, which was made in mid-January, received a tepid response as the cash portion of the offer at 31.5 sen was viewed as too low, and the valuation of Sunway at RM5.65 was seen as high prior to the IPO of Sunway Healthcare. Sunway shareholders were slated to receive 676.04 million Sunway Healthcare shares via a dividend-in-specie, on the basis of one Sunway Healthcare share for every 10 Sunway shares held.

Another sticking point is that the issue price of RM5.65 values Sunway at RM38.7 billion, inclusive of its 84% equity interest in Sunway Healthcare, which listed on Bursa Malaysia on March 18.

IJM shareholders were excluded from the dividend-in-specie.

IJM shareholders would collectively end up with 20.6% in the merged entity, if the offer is accepted.

Sunway stock, which has taken a hit for a number of reasons, finished last Wednesday at RM5.48 after gaining 25 sen following Sunway Healthcare’s sterling debut on the local bourse. The integrated medical services provider gained 40 sen, or 27.59%, to close its first trading day at RM1.85.

It is also noteworthy that Sunway’s offer for IJM is conditional upon acceptance of 50% plus one share.

Malaysian Anti-Corruption Commission chief commissioner Tan Sri Azam Baki’s recent comment that the anti-graft agency had opened an investigation paper on Sunway’s takeover offer also weighed on its share price.

In its March 13 independent advice circular to IJM shareholders, M&A Securities Sdn Bhd said the offer is not fair and not reasonable, considering the deep 46.1% to 51.4% discount to the estimated value ascribed to each IJM share of between RM5.84 and RM6.48.

The IJM board, meanwhile, unanimously recommended that shareholders reject the Sunway offer. It had also obtained a valuation from Rothschild, which pegged the IJM shares at a fair value of RM4.80 to RM5.63, which indicates why they are opposing the takeover.

When asked about Sunway’s plan to take over IJM at Sunway Healthcare’s prospectus launch in late February, Cheah said, “There is a lot of noise out there, but I stress that there is no compulsory acquisition. Sunway does not bully or hurt people. This is purely for commercial purposes. We see IJM as an attractive asset, so we made an offer.”

Whether Cheah has had a change of heart or recognises that the offer for IJM is low remains to be seen. IJM closed last Wednesday at RM2.33, down from RM2.74 when the offer was first made.

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