KUALA LUMPUR, March 31 — The Employees Provident Fund (EPF), the single largest shareholder in IJM Corporation Bhd (20.52%), has decided to reject Sunway Bhd’s RM3.15 per share offer to acquire its stake in the construction giant.
Sources said EPF’s investment committee determined that the proposed price undervalues IJM, citing the company’s potential for asset monetization and long-term gains. EPF becomes the second government-linked fund to turn down the offer.
Following Permodalan Nasional Bhd (PNB), which holds 13.3% of IJM. Collectively, government-linked investment funds hold nearly 49% of IJM. Sunway’s offer, partially cash and partially shares, had been justified.
As aligned with the weighted average target price from independent research houses, but two independent valuations commissioned by IJM placed the share value between RM4.80 and RM6.48. Despite shareholder approval for Sunway’s bid, acceptance has remained below 13%.
With the first closing date set for April 6. IJM’s management has hinted at possible asset listings and divestments to unlock value. The decision by EPF and PNB highlights ongoing resistance from major stakeholders.
Underscoring concerns that the offer does not fully reflect the intrinsic value of IJM’s assets and growth potential.
