KUALA LUMPUR – Sunway Bhd is exploring a merger with IJM Corp, which would result in the formation of an engineering and construction powerhouse.
Market sources told Scoop that Sunway and IJM have been in talks for over a year, and the merger will involve a share swap in a deal that is said to be worth billions, taking into consideration the assets, valuation and market capitalisation of both firms.
Sunway’s revenue last year was RM7.8 billion, while IJM netted RM5.9 billion.
A potential testy component of this agreement is that over half of IJM shares are held by institutional Bumiputera firms and Government Linked Investment Companies (GLIC).
Chief among them is the Employees Provident Fund (EPF ) at 18.04% and Perbadanan Nasional Bhd (PNB) at 14.55%.
Others include the Pension Fund (KWAP); Tabung Haji, Amanah Raya, and Amanah Saham Bumiputera.
At the centre of Sunway Group, with its diversified businesses — that include construction, property, resorts and hospitality — is its founder and chairman Tan Sri Jeffrey Cheah Fook Ling.
Meanwhile, construction and engineering firm IJM is anchored by its non-executive chairman Tan Sri Krishnan Tan Boon Seng.
The dilution of Bumiputera and Institutional shareholding has been discussed previously with IJM’s bid to take over Prolintas, owned by PNB.
The proposed Prolintas acquisition prompted a response from Prime Minister Datuk Seri Anwar Ibrahim, who reminded institutions entrusted with safeguarding national and Bumiputera interests to maintain their ownership of the country’s strategic assets.
His remarks in August followed PNB’s announcement that it is looking at divesting its highway assets, primarily Prolintas, with IJM and AFA Prime (which owns Karak Highway) revealed as the main parties interested in taking over.
At press time, Sunway shares were trading at RM5.48 and IJM at RM2.43. — November 4, 2025