KUALA LUMPUR – IJM Corporation Bhd has today denied any knowledge of a potential merger with Sunway Bhd, following reports in the local media suggesting ongoing discussions between the two companies.
In a filing with Bursa Malaysia, the company clarified that its board has not been approached regarding the matter.
“The board is not aware of any such proposal,” IJM stated in the announcement.
It added that the company is committed to adhering to Bursa Malaysia’s disclosure requirements, promising to make further announcements should any material developments arise.
Sunway also issued a similar statement, confirming that no discussions or negotiations have taken place with IJM.
“If and when definitive decisions are made with respect to any corporate actions, the relevant announcements will be issued in accordance with the Main Market Listing Requirements of Bursa Malaysia,” Sunway added.
Scoop reported on November 4 that Sunway was considering a merger with IJM, which could potentially create a dominant player in the engineering and construction sectors.
According to market sources, the two firms have been in talks for over a year about a share exchange deal, which is believed to be worth billions, factoring in both companies’ assets, valuation, and market capitalisation.
Sunway reported a revenue of RM7.8 billion last year, while IJM recorded RM5.9 billion in revenue.
The merger talks are further complicated by the fact that a substantial portion of IJM’s shares are held by institutional Bumiputera companies and Government Linked Investment Companies (GLIC).
Key institutional stakeholders include the Employees Provident Fund (EPF), which holds 18.04%, and Perbadanan Nasional Bhd (PNB), which owns 14.55%. Other institutional investors include the Pension Fund (KWAP), Tabung Haji, Amanah Raya, and Amanah Saham Bumiputera.
At the helm of Sunway Group, which has interests across construction, property, resorts, and hospitality, is its founder and chairman Tan Sri Jeffrey Cheah Fook Ling. Meanwhile, IJM’s leadership is headed by its non-executive chairman, Tan Sri Krishnan Tan Boon Seng.
Previously, discussions regarding the dilution of Bumiputera and institutional holdings arose during IJM’s attempt to acquire Prolintas, a company owned by PNB.
The proposed acquisition prompted remarks from Prime Minister Datuk Seri Anwar Ibrahim, who urged institutions responsible for protecting national and Bumiputera interests to safeguard their ownership of strategic national assets.
His comments followed PNB’s announcement in August that it was considering divesting its highway assets, with IJM and AFA Prime (which owns the Karak Highway) identified as potential buyers. — November 7, 2025