KUALA LUMPUR: The board of directors of IJM Corp Bhd recommends that shareholders reject the takeover offer by Sunway Bhd, as it unanimously concurs with independent advisor M&A Securities that the takeover offer by Sunway Bhd is "not fair and not reasonable".
In an independent advice circular filed with Bursa Malaysia, Malacca Securities said the offer price of RM3.15 per share - which will be satisfied in 31.5 sen in cash and about RM2.835 in consideration shares - represents a discount to the sum-of-parts value (SOPV) of the company.
The securities firm found in its assessment the offer represents a 46.1% discount to the estimated low value of IJM's share of RM5.84, and a 51.4% discount to the estimated high value of RM6.48.
Additionally, the offer has an implied value of RM3.08 per share as the cash consideration has not been adjusted for the two sen dividend announced by Sunway on Feb 25, 2026 - which represents an even steeper discount of 47.3% and 52.4% to the estimated value of the IJM's shares.
Thirdly, Malacca Securities also highlighted that the implied exchange ratio of IJM shares with Sunway shares under the offer of 0.501 is significantly lower than the implied exchange ratio of IJM Shares with Sunway Shares of 1.062 based on the mid-point of the estimated value of each IJM Shares of RM6.16.