Sunway’s share price falls to seven-month low

Tuesday 03 Nov 2026

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KUALA LUMPUR (March 31): Sunway Bhd’s (KL:SUNWAY) shares hit a seven-month low on Tuesday, following reports that its bid for IJM Corporation Bhd (KL:IJM) is said to have been rejected by the latter's major shareholders.

The stock dropped by as much as 61 sen or 11.73% to a low of RM4.59 before regaining some lost ground to close at RM4.80 — still down 40 sen or 7.7% — for a market capitalisation of RM32.7 billion. It saw some 22.2 million shares traded.

The drop also comes after its healthcare unit Sunway Healthcare Holdings Bhd (KL:SUNMED) started sliding, dropping 15.2% in the last two days after a roaring Main Market debut on March 18 that sent the stock up over 60%. Sunway Healthcare closed at RM2 on Tuesday, down nine sen or 4.3%.

There is no 'sell' rating on Sunway, which is covered by 13 research houses, of which 10 are recommending a 'hold' on the stock, with three keeping it at 'buy'. The average 12-month target price for the stock is RM5.76 a share, with the TP ranging from RM4.32 to RM6.26.

Malacca Securities attributed the decline in Sunway's share price to both the drop in Sunway Healthcare shares over the last two days and the reports that its bid to acquire IJM "appears to have faltered". "That undermines the prospect of creating Malaysia’s largest construction group and erodes the anticipated synergistic benefits," head of research Loui Low said when contacted.

The sentiment seems to have also affected Sunway Construction Group Bhd (KL:SUNCON), whose share price fell 48 sen or 7% to a month-low of RM6.37 on Tuesday, trimming its market valuation to RM8.46 billion.

The Edge reported on Monday, citing sources, that both the Employees Provident Fund (EPF) and Retirement Fund Inc (KWAP) have decided to reject Sunway's offer for their shares in IJM, as they believe the offer does not reflect the latter's intrinsic value. The EPF is the single largest shareholder of IJM, with a 20.52% stake; KWAP is the third largest shareholder with a 9.6% stake. Neither the EPF nor KWAP has responded to requests for comments on the matter.

The latest development comes about two weeks after Permodalan Nasional Bhd (PNB) announced that it had decided not to accept Sunway's offer. PNB holds 13.3% of IJM.

Sunway made its offer of RM3.15 per IJM share on Jan 12, to be settled through an exchange of shares and cash. The cash portion is 10% of the offer price while Sunway will pay the rest in shares issued at RM5.65 each. IJM commissioned two independent valuations after Sunway's offer was made. Both valuations valued IJM at a price way above Sunway's offer of RM3.15 per share.

Edited ByTan Choe Choe

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