IJM Corporation Bhd, Sunway Bhd Shares Slip as Market Awaits Critical Takeover Decision
PETALING JAYA, April 6 — Shares of IJM Corporation Bhd and Sunway Bhd weakened as the market approached a pivotal decision point on Sunway’s proposed takeover of IJM.
By midday, IJM traded at RM2.29 while Sunway stood at RM4.99, reflecting cautious sentiment among investors assessing the likelihood and implications of the deal.
The price movement underscores the uncertainty surrounding the outcome as the deadline draws near.
Offer Faces Intense Valuation Scrutiny
Sunway’s RM3.15 per share offer remains under close examination, with investors questioning whether it adequately captures IJM’s intrinsic and future value.
While the acquisition could strengthen Sunway’s infrastructure portfolio, concerns persist over whether the pricing reflects long-term growth prospects.
Institutional Shareholders Hold the Key
Signals from major institutional investors have played a decisive role in shaping market expectations.
Permodalan Nasional Bhd has rejected the offer, while sources indicate that Employees Provident Fund (EPF), a significant shareholder, has also declined.
Such positions are widely viewed as critical indicators of the deal’s viability.
Independent Adviser Questions Fairness
The independent adviser, M&A Securities Sdn Bhd, concluded that the offer is neither fair nor reasonable, reinforcing the board’s recommendation for shareholders to reject it.
This assessment has added further weight to investor caution.
Focus Shifts to Long-Term Value
IJM has highlighted that its infrastructure assets are transitioning into operational phases, which are expected to deliver stronger and more stable returns over time.
The company argues that short-term valuation metrics may not fully capture this future potential.
Outcome to Shape Market Direction
With the deadline imminent, investors are closely watching the final decision, which is expected to influence both companies’ share performance and broader sector sentiment.
The result will likely provide clarity on how the market values long-term growth versus immediate acquisition premiums.
-wilayah.com.my
