KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Shares of IJM Corporation Bhd surged to a four-month high after Sunway Bhd unveiled a cash-and-share acquisition proposal worth over RM11 billion, sparking optimism over valuation certainty and long-term strategic upside.
What Happened
IJM rose 6.9% (19 sen) to RM2.94, its highest level since August
The move values IJM at RM10.7 billion
Sunway shares slipped 2.1% to RM5.48 following the announcement
Under the proposed deal, every 1,000 IJM shares will be exchanged for:
RM315 in cash
501 new Sunway shares (valued at RM2,835)
The offer values IJM at RM3.15 per share, made up of 90% Sunway shares and 10% cash.
Analysts: “Fair Offer, Acceptable Valuation”
Research houses broadly view the voluntary takeover offer (VTO) as fair and reasonable, recommending shareholders accept the offer.
Key analyst views:
Valuation aligned with IJM’s historical forward P/E and near NAV
Provides price certainty and immediate monetisation
Some target prices remain slightly above the offer, but the premium to recent market prices supports acceptance
The deal is subject to:
Minimum acceptance of 50% + 1 share
Shareholder and regulatory approvals
Target completion: 3Q 2026
Strategic Upside: Why the Deal Makes Sense
Analysts highlighted earnings accretion and operational synergies as key attractions:
- Scale advantage:The combined Sunway–IJM group would rival Gamuda Bhd as one of Malaysia’s largest construction players by revenue.
- Stronger earnings visibility:IJM gains access to Sunway’s internal property development pipeline, which typically offers more stable margins than open-tender construction work.
- Cost and operational synergies:Expected benefits from bulk procurement, vertical integration, and operational efficiencies could support margins over the medium term.
TA Securities noted the deal is “meaningfully de-risking” for IJM shareholders, offering exposure to a larger, more diversified earnings platform.
What Happens Next
Sunway has indicated it does not intend to maintain IJM’s listing status, raising the likelihood of:
Corporate consolidation
Rationalisation of overlapping construction, manufacturing, and quarrying operations
Investment Takeaway
The Sunway offer provides IJM shareholders with:
A fair exit price
Upside participation via Sunway shares
Lower earnings risk within a larger, diversified group
For Sunway, the deal strengthens its position as a national-scale property and construction heavyweight, better positioned to bid for large infrastructure and development projects.
Key points to remember
IJM hits four-month high on takeover news
RM11bn deal largely backed by analysts
Earnings visibility and synergies drive appeal
Listing likely to be discontinued post-merger
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