Malaysia's IJM Corp announced its board has urged shareholders to reject Sunway's approximately $2.8 billion takeover bid. An independent adviser deemed the offer price of 3.15 ringgit per IJM share "not fair and not reasonable." This price represents a significant discount to the estimated value of IJM shares based on a sum-of-parts valuation.
IJM's board unanimously agreed with the adviser's assessment. The offer had included a 14.5% premium to IJM's last closing price when proposed. The potential merger would combine two major Malaysian construction and property firms amidst heightened industry competition for scale and advanced capabilities.
This transaction, if completed, would be one of Asia's largest deals this year, excluding Japan.