Sunway’s $2.8 Billion Bid at Risk as IJM Board Urges Rejection

Malaysian construction giant Sunway Bhd.’s 11 billion ringgit ($2.8 billion) takeover bid for IJM Corp Bhd. faces growing uncertainty after the target’s board and an independent adviser urged shareholders to reject the offer, citing valuation concerns. Analysts are divided on how investors should respond.

IJM’s board backed an assessment by independent adviser M&A Securities, saying in a circular that the proposal was “NOT FAIR and NOT REASONABLE.” The board “unanimously recommends” that shareholders reject the offer, it said in the circular published on the Malaysian stock exchange on Friday.