IJM: Tactical Opportunity to Ride on DC Boom Plus Value Unlocking Exercises

IJM looks like a catalyst story in the making. The failed Sunway takeover may have become the trigger that forces management to unlock hidden value through asset disposals, potential spin-offs, and special dividends, while its construction arm continues to ride the data center boom.

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DoitDuit | Your Investing Friend & Ren 🗿
May 20, 2026

1. Sunway’s Failed Voluntary Takeover Offer

On 12 Jan 2026, Sunway launched a gutsy move to takeover IJM, offering to buy IJM shares at RM3.15/share in a deal to be satisfied in:

  • 10% cash payment; and

  • 90% Sunway shares at RM5.65 per share.

At the time, I wrote a brief note on the corporate action in our Paid Subscribers Telegram Group, and I mentioned that IJM is the bigger loser in the deal, and I was doubtful if the government funds would accept the offer. 

Excerpt from an interview between The Edge and IJM’s Managing Director

During the subsequent weeks, IJM’s MD and CEO, Dato Lee Chun Fai, alongside the board of directors, as well as the independent advisor, unanimously advised all shareholders to reject the takeover offer by Sunway. Dato Lee even went on media to explain how he sees the value in IJM and what steps they are planning to realize that value.

On 6 April 2026, the deal officially failed as Sunway only managed to secure 33.43% of shares amounting to 1,171.7 mil shares.

With that out of the way, what is next for IJM?

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