In a filing with Bursa Malaysia today, IJM said the appointed adviser, M&A Securities Sdn Bhd, noted that the offer price represents a discount of approximately 46% to 51% to the estimated value of IJM shares, which ranges from RM5.84 to RM6.48.
“The board has concurred with the conclusion and recommendation of M&A Securities that the offer is not fair and not reasonable.
“Accordingly, the board unanimously recommends that the holders reject the offer,” the company said.
The offer will remain open for acceptance until 5pm on April 6.
On Jan 12, Sunway tabled a conditional voluntary takeover offer for 3.51 billion shares in IJM at RM3.15 per unit.
IJM said in a separate statement its board appointed Rothschild & Co Malaysia Sdn Bhd as its financial adviser to conduct a valuation exercise as part of its internal review.
Rothschild & Co assessed IJM’s indicative equity value at RM16.81 billion to RM19.72 billion, equivalent to RM4.80 to RM5.63 per share, it said.
The independent advice circular (IAC), on the other hand, valued IJM shares at RM5.84 to RM6.48 each.
It said that based on Sunway’s offer structure and after adjusting for the special distribution of Sunway Healthcare shares to Sunway shareholders in connection with its IPO, the implied consideration for IJM shareholders is RM3.08 per share, representing a 47.6% to 52.7% discount to the independent adviser’s valuation range.
“While the IJM board’s recommendation is guided by the opinion of the independent adviser, it also notes that the independent valuation by Rothschild & Co, which serves as a secondary reference, indicates a value materially above the offer price of RM3.15 per share,” IJM said.
It said the IAC highlighted that the valuation gap should be considered in the context of IJM’s current investment cycle.
“The group is currently at a turning point, with several of its key assets transitioning from development into operational phases,” it said, citing the West Coast Expressway, the New Pantai Expressway extension, and UK developments like 88 Royal Mint Street.
IJM CEO Lee Chun Fai said exiting now would mean leaving before these assets reach full value.
“Our focus remains on executing our strategy and unlocking the value of the portfolio we are building,” he said