KUALA LUMPUR – Shares of IJM Corporation Bhd fell in early trading on Tuesday, while Sunway Bhd inched higher after its conditional voluntary general offer (VGO) did not reach the necessary shareholder acceptance threshold.
The VGO lapsed as it failed to secure support from more than 50 per cent of IJM shareholders.
Trading in both IJM Corp and Sunway securities was temporarily suspended on Bursa Malaysia between 9am and 10am. By 10.45am, Sunway shares had risen one sen to RM5, with 868,200 shares traded. IJM, meanwhile, declined five sen to RM2.31 on a turnover of 1.1 million shares.
Hong Leong Investment Bank Bhd (HLIB) observed that the unsuccessful takeover could delay value realisation for IJM shareholders but reflects a long-term perspective among strategic stakeholders.
“However, it is understandable that IJM’s strategic shareholders may be taking the longer-term view for a larger upside as the group aims to execute on a slew of value unlocking exercises as mentioned in its independent advisor’s briefing earlier. These include highways monetisation, listing of its construction arm and India portfolio rationalisation. In any case, the takeover attempt has created a strong sense of urgency for IJM’s management and board to expedite these initiatives, in our view,” HLIB said in a research note today.
The investment bank added that any spin-off of IJM’s construction division would depend on achieving stronger margins, expanding exposure to data centre projects, and sustaining a robust pipeline of new contracts.
Meanwhile, MBSB Investment Bank Bhd highlighted potential near-term contract wins for IJM, particularly in data centre developments across the Klang Valley and Johor.
The group may also secure a share of major infrastructure projects, including the RM5 billion to RM6 billion Penang Mutiara Line LRT cross-sea package, boosting visibility for its order book. – April 7, 2026