Analysts in favour of IJM investors accepting Sunway’s offer, even as adviser says reject

[KUALA LUMPUR] Most analysts are in favour of IJM Corporation shareholders accepting Sunway’s takeover offer, despite an independent adviser’s report that did not think it was a good deal.

M&A Securities, the independent adviser, released its findings on the merger deal last Friday (Mar 13) and advised IJM’s board and shareholders to reject the RM11 billion (S$3.5 billion) offer from rival developer Sunway, as it is “not fair and not reasonable”.

Based on a sum-of-parts (SOP) approach, the adviser estimated IJM’s valuation to be between RM5.48 and RM.6.48 a share – significantly higher than the offer price of RM3.15 per share.