Sunway abandons RM11 billion bid for IJM after shareholders deliver 33.4% support

SINGAPORE, 24 AUGUST 2026 —

Malaysian Conglomerate Sunway Abandons $2.8 Billion Bid for IJM Corp.

The real estate-to-healthcare conglomerate received acceptances for just 1.18 million IJM shares, representing 33.4% of the company’s outstanding shares, by the close of the offer period on Monday. This fell short of the 50% threshold required for the deal to proceed, IJM said in a regulatory filing.

“We respect the decision of IJM shareholders and the outcome of the process,” Sunway said in a statement. “In any transaction of this scale, differing perspectives are natural, and we acknowledge the public discourse that has accompanied the offer.”

The failed bid follows months of opposition from IJM’s board and major shareholders. In March, IJM’s board urged investors to reject Sunway’s offer of RM3.15 per share, calling it below fair value. Malaysian state-linked investor Permodalan Nasional Bhd (PNB), which holds a 13.5% stake in IJM, also declined the offer.

“With the offer now concluded, IJM moves forward with resolve, executing an enhanced strategy to deliver the value of its portfolio across the Group’s core businesses,” said Lee Chun Fai, group CEO and managing director of IJM, in a separate statement.

The proposed merger would have created one of Malaysia’s largest property and construction groups, with combined assets of RM57.8 billion. Following the announcement, IJM shares fell as much as 3% in Tuesday morning trading, while Sunway shares remained flat.

Sunway, however, reaffirmed its commitment to its existing growth strategy. “Sunway remains firmly focused on executing our strategy and continuing to deliver value across our integrated businesses as we have done over the years,” the company said.

The bid’s collapse comes amid a broader shift in Malaysia’s corporate landscape, where conglomerates are reassessing expansion plans amid economic uncertainty and regulatory scrutiny. Sunway, under Cheah’s leadership, has been aggressively expanding its property portfolio, including a recent agreement to acquire Singapore’s MCL Land for S$739 million ($578 million). In March, its healthcare unit, Sunway Healthcare, completed Malaysia’s largest initial public offering in nearly a decade, raising RM2.9 billion.

Jeffrey Cheah, chairman and founder of Sunway, has transformed the group from a small tin-mining company into a diversified conglomerate with interests in construction, education, healthcare, infrastructure, and property. With a real-time net worth of $4.8 billion, he remains one of Malaysia’s wealthiest individuals.

Industry analysts suggest the failed bid may prompt Sunway to pursue alternative growth avenues, particularly in Singapore and other regional markets where it has been expanding. The outcome also highlights the challenges faced by Malaysian conglomerates in executing large-scale mergers amid shareholder resistance and valuation disputes.

For IJM, the withdrawal of Sunway’s offer removes immediate takeover pressure, allowing the group to refocus on its operational strategy. The company has emphasized its commitment to unlocking value across its core businesses, including construction, property development, and utilities.

The episode underscores the evolving dynamics of Malaysia’s corporate M&A landscape, where state-linked investors and institutional shareholders play an increasingly influential role in shaping deal outcomes. While Sunway’s bid has ended, the broader trend of consolidation in Malaysia’s property and construction sectors is likely to continue, driven by competitive pressures and the need for scale.

As both companies recalibrate their strategies, the market will closely watch Sunway’s next moves, particularly in Singapore and its healthcare expansion, while IJM seeks to strengthen its market position independently.

Related: IJM · Singapore