This article first appeared in The Edge Malaysia Weekly on January 26, 2026 - February 1, 2026
A number of companies and consortiums are considering a takeover bid for IJM Corp Bhd (KL:IJM), rivalling the RM11 billion conditional voluntary takeover offer being mounted by Sunway Bhd (KL:SUNWAY), but are awaiting clarity following negative newsflow on IJM.
There could be at least three or four other offers for the construction stalwart, including one from a Sarawak government-led bumiputera consortium, sources tell The Edge. A possible offer is also being ironed out at YTL Corp Bhd (KL:YTL) while Khazanah Nasional Bhd’s UEM Group Bhd has been asked by “certain parties in power” to look at IJM to keep it in bumiputera hands.
It is learnt that there are also parties, such as Tan Sri Azmil Khalili Khalid’s AFA group, that are keen to acquire only IJM’s toll road business held under Road Builder (M) Holdings Bhd and are open to exploring options if the asset comes up for sale.
While the Sarawak government, YTL Corp, UEM Group and Azmil declined to comment on the subject, sources familiar with the matter say offers are being studied and, in some cases, “being put together”.
“A number of companies and businessmen have expressed interest in IJM, which is totally understandable … IJM is a fantastic company with great assets. Why wouldn’t they be interested?” says a source.
Another source says, “I know a number of proposals are being put together, but whether the interested parties will be able to put together a bid to rival Sunway’s remains to be seen … Then there is also the MACC issue, with some interested parties jamming on the brakes, waiting for more clarity.”
The recent visit by the anti-graft body, the Malaysian Anti-Corruption Commission (MACC), has spooked some potential bidders and made it difficult to obtain funding as the financial institutions are likely to wait for investigations to be concluded.
Sunway, meanwhile, has come out to say that the “Proposed Offer is proceeding in accordance with the Rules on Take-overs, Mergers and Compulsory Acquisitions issued by the Securities Commission Malaysia, and the Proposed Offer is subject to the approval of the shareholders of Sunway to be sought at an extraordinary general meeting to be convened”, meaning that it is pressing ahead, undeterred by the possible investigation.
But then again, Sunway’s intent to control IJM goes as far back as April 2021, when its wholly-owned Fortuna Gembira Enterpris Sdn Bhd acquired 4.95% equity interest in IJM.
Fortuna Gembira’s stake was nudged up to a tad more than 5% as IJM undertook share buybacks. However, at end-September 2023, the company reduced its stake to below the 5% threshold that requires public disclosure.
At the heart of the matter among certain high-level politicians is the belief that IJM has to be taken over by a bumiputera outfit, given that strategic assets such as Kuantan Port Consortium Sdn Bhd, the holder of the concession for Kuantan Port, and a number of highways are parked under IJM.
While UEM Group is understood to have been instructed to look at IJM, the truth of the matter is that the diversified group had decided to wind down UEM Builders Bhd after the completion of Merdeka 118 in 2024 to focus on the design and engineering part of the construction value chain.
“UEM Group has been winding down its construction business since 2015. Even now, it is only taking jobs involving the ‘warranty period’ needs of Merdeka 118,” says a source familiar with the group.
In its financial year ended Dec 31, 2024, UEM Group chalked up an after-tax profit of RM724.92 million on revenue of RM6.32 billion. The group had total assets of RM27.09 billion and total liabilities of RM13.1 billion during the period in review. UEM Builders had zero revenue and suffered a net loss of RM21.59 million that year.
YTL Corp, which is in the construction, power generation, telecommunications and water treatment business, among others, is a cash-rich entity with strong business partners that could more than meet any bumiputera requirement. One of the group’s business partners is the Johor royal family.
In its first financial quarter ended Sept 30 last year, YTL Corp mustered a net profit of RM346.48 million on revenue of RM7.64 billion. It had fixed deposits of RM14.49 billion and cash and bank balances of RM1.83 billion during the period in review. On the other side of the balance sheet, it had RM45.4 billion of long-term borrowings and RM7.02 billion of short-term borrowings.
While some quarters say the Sarawak government and a private company in the state are interested in IJM, there has been no confirmation of their interest.
It is understood, however, that any bid from these parties could be different from Sunway’s conditional voluntary takeover offer, and could be only for a substantial stake of 30% in IJM.
A 30% stake would cost RM2.77 billion at IJM’s closing price of RM2.64 last Friday, which gave the company a market capitalisation of RM9.25 billion. This is 10% down from the market capitalisation of RM10.7 billion the day after Sunway’s offer was announced, when IJM’s share price rose 19 sen to close at RM2.94 on Jan 12.
IJM’s largest shareholder is the Employees Provident Fund (EPF), which has been mopping up the company’s shares and had a 20.12% stake or 705.28 million shares in the company as at Jan 19, up from 18.17% or 636.89 million shares at end-2024.
Early this month, Sunway announced an RM11 billion cash-and-shares deal to take over IJM, offering 31.5 sen in cash and 0.501 new Sunway shares, to be issued at RM5.65 apiece. The 31.5 sen cash, considering IJM’s share base of 3.5 billion, works out to a capital layout of RM1.1 billion, with the rest of the offer coming in the form of shares.
Critics point out that Sunway’s share price had gained in the run-up to its healthcare unit’s initial public offering (IPO), while IJM’s share price had been depressed for some time. While most research houses were supportive of the deal, Kenanga Research highlighted that its target price for Sunway was RM4.73, which meant that IJM was being valued at only RM2.69 — below both IJM’s share price of RM2.75 at the time and the research house’s target price of RM3.40.
When Sunway announced its offer, IJM’s share price had already gained 21%, as the news had likely leaked, while Sunway’s share price had more than doubled since early 2024, buoyed by Sunway Healthcare Holdings Bhd’s IPO slated for this year.
To recap, Sunway is looking to distribute 676.04 million Sunway Healthcare shares to existing shareholders on the basis of one Sunway Healthcare share for every 10 Sunway shares held as a dividend in specie. However, IJM shareholders will not be entitled to this distribution of Sunway Healthcare shares.
In a report released early this month, Hong Leong Investment Bank Research put Sunway Healthcare’s dividend in specie to Sunway shareholders at about 18 sen per share, which basically indicated that Sunway’s share price was likely to dip by this quantum after the dividend in specie is issued.
IJM’s share price also took a beating after MACC and the Inland Revenue Board visited its office to gather information that could be a prelude to further investigations.
Irrespective of what transpires, it seems that Sunway’s bid to take over IJM may not be the last.
Respected past, uncertain future
On the cover of its 2023 annual report, IJM Corp Bhd (KL:IJM) had the words “Respected Past. Responsible Future.” in bold, blue capital letters, with a colourful “40 years” over a white background.
Now, barely three years after its 40th anniversary, IJM may not be the only party responsible for its future. An unsolicited RM11 billion mostly-shares-plus-some-cash buyout offer for the construction-based conglomerate has been announced by Sunway Bhd (KL:SUNWAY) — the diversified behemoth controlled by billionaire tycoon Tan Sri Sir Jeffrey Cheah Fook Ling — which has its own construction arm, Sunway Construction Group Bhd (KL:SUNCON).
Truth be told, IJM’s success over the years has courted a string of suitors seeking to control it.
Those familiar with IJM will know that it has always been professionally managed — the face of the company was never its largest shareholder, which left day-to-day operations to the management team.
This was most apparent when IGB Bhd (KL:IGBB) sold its 19% interest in IJM for RM383 million to Tronoh Consolidated Malaysia Bhd in 2003. Toronoh Consolidated is today known as Zelan Bhd, a Practice Note 17 company that is 39%-owned by businessman Tan Sri Syed Mokhtar Albukhary’s MMC Corp Bhd. Zelan ceased to be an IJM substantial shareholder in early 2011.
IJM’s history can be traced back to 1982, when IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Sdn Bhd commenced merger talks to better compete with foreign companies that were dominating the growing Malaysian construction industry.
On July 16, 1983, Solidstate Sdn Bhd issued shares to acquire the three companies and a year later, it was renamed IJM Engineering & Construction Sdn Bhd — taking the first letters of the three companies. The persons instrumental in securing the merger included Datuk Yap Lim Sen, Tan Sri Ahmad Azizuddin and Koon Yew Yin. The company was listed on Sept 29, 1986.
Almost immediately after its formation, IJM expanded into quarrying via the acquisition of a 49% stake in Pucung Building Products Sdn Bhd. Shortly after, it ventured into property development via a privatisation project in Selangor involving Perbadanan Kemajuan Negeri Selangor and the building of the Batu Lancang Apartments in Penang.
Seeking a steadier income stream to counter often lumpy construction earnings, IJM ventured into the plantation business in 1985 by acquiring the 4,000ha oil palm plantation, Desa Talisai, near Sandakan in Sabah. Unlocking value for shareholders, the plantation division was injected into a listed company, Rahman Hydraulic Tin Bhd, and renamed IJM Plantations Bhd, following a reverse takeover in July 2003 under which IJM retained a 49% stake in the latter after distributing two IJM Plantations shares for every five IJM shares.
IJM Plantations’ estates had grown to 25,014ha in Sabah and 36,263ha in Indonesia before IJM sold its 56.2% stake in the company to Kuala Lumpur Kepong Bhd (KL:KLK) for RM1.53 billion in December 2021.
IJM was also among the first local companies to venture abroad to diversify their income streams in the 1980s. Today, it has built an expansive foreign venture portfolio and presence in China, India, the UK, Pakistan, Bangladesh, Australia, Myanmar, Vietnam, Hong Kong, Bangladesh, Sri Lanka and Argentina, among others.
In 1985, it secured its first project in Sydney, Australia, and even undertook the building of residential units in Florida, the US, which was then an unfamiliar terrain for most Malaysian companies. That year, IJM acquired Sharidal Complex in Petaling Jaya, which is now called Wisma IJM, its head office.
After its flotation in 1986, IJM secured a road project in Bangladesh. Another notable foreign foray was the building of a water treatment plant in Ho Chi Minh City, Vietnam, in 1993. In 1996, it acquired a 20% stake in China’s Guangdong Provincial Expressway Development Co Ltd, which was subsequently listed on the Shenzhen Stock Exchange. IJM’s presence in China was strengthened with a 25.5% equity interest in Yangzhong Changjiang Great Bridge, a toll concessionaire in Jiangsu. However, the China concessions were sold in the 1990s.
Venturing into Argentina in 1996, IJM entered into a concession agreement to build and operate the 56km Western Access Tollway. It has a 20% stake in Grupo Concesionario del Oeste SA, which holds the concession until end-2030.
In 1997, IJM made its first foray into India via a 60% interest in the Gautami power plant concession. A year later, it secured the Mumbai-Pune Expressway and Chennai Bypass projects, making it one of the first few Malaysian companies to succeed in the country. It was also involved in the building of the Vivekananda Bridge in Kolkata and is currently developing the Raintree Park Dwaraka Krishna Township on a 108-acre tract in Vijayawada, Andhra Pradesh, and the 42.6-acre First City Project in Nagpur.
IJM ventured into the UK in 2012 and completed the £245 million (about RM1.4 billion) Royal Mint Gardens — comprising 265 luxury apartments in three blocks — in 2019. It is currently building the second phase — 88 Royal Mint Street — which is located near Tower Bridge.
IJM has also partnered Network Rail — the owner, operator and developer of most of Great Britain’s railway infrastructure, including 20 of the UK’s largest railway stations — to form Innova Partnership, which entails IJM scouting for redevelopment potential for Network Rail’s assets, with a potential gross development value of £7 billion. According to English newspaper reports, IJM plans to develop an 11-acre parcel situated on the northern portion of a former Shredded Wheat factory site in Hertfordshire’s Welwyn Garden City. It will build 141 retirement homes, 133 houses, 300 build-to-rent flats and a 180-room aparthotel, among others.
A penchant for corporate exercises
IJM has undertaken numerous corporate exercises over the last four decades. More often than not, the company had gains to report.
For instance, in 1997, its unit Jelutong Development Sdn Bhd was awarded a RM300 million contract to build the Jelutong Expressway and received 325 acres of development land in Penang as payment. The tract has now been developed into The LIGHT Waterfront Penang project.
In 2004, IJM, which already had a 21.13% stake in Industrial Concrete Products Bhd (ICP), acquired an additional 33.18% interest in it for RM95 million from Tan Sri Quek Leng Chan’s Hume Industries (M) Bhd. IJM then injected its wholly-owned Malaysia Rock Products Sdn Bhd into ICP for RM110 million in exchange for new shares in the latter, strengthening its shareholding to 73.78%. ICP was eventually privatised and delisted from Bursa Malaysia in December 2008.
In 2005, IJM sought to acquire 25% of financially distressed Kumpulan Europlus Bhd, a property developer with large tracts of land in Selangor, for RM33 million cash with a call option for a further 5% stake from the company’s controlling shareholder, the late Tan Sri Chan Ah Chye. Chan, who controlled both Kumpulan Europlus and Talam Corp Bhd (now Talam Transform Bhd), had been facing cash flow constraints and had approached IJM.
Kumpulan Europlus is today known as highway operator WCE Holdings Bhd, which has an 80% stake in West Coast Expressway Sdn Bhd, the operator of the 233km West Coast Expressway. IJM has 26.65% in WCE Holdings (KL:WCEHB) and controls the remaining 20% of West Coast Expressway Sdn Bhd.
A significant acquisition came in 2008 when IJM took over Tan Sri Chua Hock Chin’s Road Builder (M) Holdings Bhd for RM1.56 billion. Road Builder had a 70% stake in RB Land Holdings Bhd (previously Econstates Bhd), which eventually became part of IJM Land and was privatised for RM2 billion in mid-2014. The acquisition of Road Builder brought assets such as Kuantan Port Consortium Sdn Bhd, the operator of Kuantan Port, which forms a new trade platform and distribution hub with Malaysia-China Kuantan Industrial Park.
But IJM has had a few misses too, such as its investment in oil and gas player Scomi Group Bhd and roller shutters maker Metec Group Bhd. Both companies have been delisted.
Will IJM continue to be professionally run if businessman Jeffrey Cheah-led Sunway succeeds in taking it over? Or will new suitors swoop in with alternative offers?
One seasoned market watcher comments: “IJM is like a pretty girl, quietly sitting in the corner [with] a number of boys asking her to dance.”
Like pretty ladies, the developments at IJM will be closely watched.
