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Malaysian construction giant Sunway has announced a $2.7 billion stock and cash buyout of rival IJM Corporation, which would bring together two of Malaysia’s largest property developers.
The merger project, announced on January 12 by Sunway Chairman Anuar Taibwill form an entity with a combined market capitalization of $11.7 billion, surpassing current leader Gamuda Berhad, valued at $7.2 billion.
If the merger goes through, it will create one of Malaysia’s largest property developers, as the Southeast Asian country’s construction market heats up amid a boom in data centers and infrastructure.
Sunway and IJM are both activated Fortune‘s Southeast Asia 500, which lists the region’s largest companies by revenue. Sunway, at No. 190, generated $1.7 billion in revenue in 2024; IJM, at No. 228, generated $1.3 billion. A Sunway-IJM merger would have revenue totaling $3 billion in 2024, taking it to No. 120, overtaking Gamuda.
In a stock depot in Bursa Malaysiathe country’s stock exchange, Sunway said the merger would “position the enlarged Sunway Group to pursue megaprojects such as the development of large-scale data centers, industrial facilities and public infrastructure projects.”
Malaysia is currently experiencing a boom in data center construction, as regional demand for AI and cloud computing services increases. In 2024, industry consultant DC Byte found the country to be the fastest growing data center market in Asia Pacific.
Under the conditional tender offer, Sunway is offering to acquire IJM at $0.78 per share, 15% higher than its 2025 closing price of $0.68 per share. IJM shareholders are being offered 10% in cash and 90% in newly issued Sunway shares.
IJM shares rose 2.9% Tuesday; Sunway shares rose just 0.2%. Trading in the shares of the two companies was suspended on Monday pending the announcement of the merger. Sunway shares have risen almost 25% in the past 12 months, ahead of Malaysia’s benchmark FTSE Bursa Malaysia KLCI.
Fortune has contacted Sunway for further comment.
A history of developments
Sunway is a family conglomerate founded in 1974 by Malaysian tycoon Jeffrey Cheah, who is still its main shareholder. The company is famous for its build-own-operate business model and its many diverse properties, including Sunway Lagoon Theme Park, Sunway Medical Center, and two educational institutions, Sunway College and Sunway University.
IJM was established in 1983, following the merger of three Malaysian construction companies: IGB Construction, Jurutama and Mudajaya. The company’s range of activities covers construction, real estate and infrastructure. It has built major roads and bridges in Malaysia, including the West Coast Expressway, an interstate highway that runs along the country’s west coast.
In a filing, Sunway’s Taib said the deal would create “synergistic value”, allowing both companies to improve margins through economies of scale and access a broader pool of talent and technical expertise. The enlarged Sunway Group will also have an expanded land base of 2,300 hectares, according to the filing.
This story was originally featured on Fortune.com
