Analysis: IJM poised to unlock standalone value as of Sunwayís takeover bid lapses

KUCHING (April 7): IJM Corporation Bhd (IJM) could be in a stronger position to unlock its standalone value after Sunway Bhd’s (Sunway) voluntary take-over (VTO) bid had failed to go through, says analysts from MBSB Investment Bank Bhd (MBSB Research).

In a reported dated April 7, the research arm said Sunway’s conditional VTO offer had lapsed on April 6 after it had failed to secure more than a 50 per cent stake in IJM, with valid acceptances reaching only 33.43 per cent.

MBSB Research said the failed bid preserves IJM shareholders’ exposure to IJM’s long-term asset monetisation pipeline and leaves IJM free to move forward with its own progressive value unlocking plans.

“We remain positive on IJMís outlook, with legacy low-margin projects nearing completion, on top of a consistent performance by the industry segment,” said the research arm.

MBSB Research also noted that IJM has so far secured RM8.2 billion worth of jobs, with about half concentrated in data centre (DC) related projects, which should reduce margin drag and support better earnings performance in the quarters ahead.

Post-VTO, the research arm expects IJM to focus on unlocking value internally, including the potential listing of its associate, Hexacon Construction, which could reposition the group as a more pure-play construction proxy.

“In parallel, management is advancing plans to monetise mature toll road assets, streamline its asset-heavy structure, and exit its India business within the next two to three years,” they added.

The research arm also noted that IJMís latest contract win solidifies improving earnings visibility for its financial year 2027 (FY27) which begun on April 1.

On April 1, IJM announced a RM658 million DC contract from Sime Darby Bhd (Sime Darby) for the main package of Phase 2 of a project in Elmina Business Park, Selangor. Construction is expected to begin in the second quarter of 2026 (2Q26), with completion targeted by the 3Q27.

MBSB Research said the Phase 2 award had largely been expected, but still serves as an important reaffirmation of the resilience of the groupís DC pipeline. The award follows an earlier DC contract secured in October 2025, bringing the groupís total contracts for the Elmina project to more than RM1.9 billion.

Looking ahead, the MBSB Research said more job wins could emerge from DC developments in the Klang Valley and Johor, while IJM could also potentially secure a share of major infrastructure works, especially the RM5 billion to RM6 billion Penang Mutiara Line LRT cross-sea package.