Malaysia property conglomerate Sunway has made an RM11bn (€2.33bn) bid for its rival IJM Corporation.
Sunway is offering RM3.15 per share for IJM Corporation, representing a 14.5% premium over its previous closing price. For each IJM share, 10% would be paid in cash and 90% in newly issued Sunway shares, subject to acceptances and approvals.
A successful merger would establish a combined entity with a total asset base valued at nearly RM60bn.
“The successful completion of the proposed offer will establish an enlarged conglomerate involved in property development and construction in Malaysia, which, based on revenue and asset base, would create a national champion.
The long-mooted merger of the two groups would produce a company with 2,300 hectares of land bank, RM118bn in gross development value and a potential RM131bn order book.
Sunway said it intended to continue IJM’s existing businesses as a separate subsidiary within the group.
Sunway was founded in 1974 by Jeffrey Cheah. It has grown into a diversified property conglomerate with interests ranging from construction, healthcare, and one of its landmark projects was Sunway City township outside the Malaysia capital, Kuala Lumpur.
Sunway has long invested outside Malaysia. In the UK, its subsidiary Sunway RE Capital owns a portfolio of student accommodation. While its Malaysian-listed vehicle, Sunway REIT has investments in Australia and a growing presence in Singapore, where it bought MCL Land late last year for S$738.7m (€493m) from Hongkong Land.
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