PETALING JAYA, 13 March 2026 – IJM Corporation Berhad (“IJM” or “the Group”) today held an analyst briefing to outline the findings of the Independent Adviser’s report issued in relation to the conditional voluntary takeover offer by Sunway Berhad.

The Independent Adviser, M&A Securities Sdn Bhd, concluded that the offer is “not fair and not reasonable” after evaluating the financial terms of the proposal and the underlying valuation of IJM. After reviewing the Independent Adviser’s analysis, the IJM Board of Directors (“IJM Board”) concurs with this conclusion and recommends that shareholders reject the offer.

Independent Valuation Assessment

The Independent Advice Circular (IAC) assessed the fair value of IJM shares in the range of RM5.84 to RM6.48 per share. Based on the offer structure and after adjusting for the special distribution of Sunway Healthcare shares to Sunway shareholders in connection with its IPO, the implied consideration to IJM shareholders is RM3.08 per share. This represents a 47.6% to 52.7% discount to the valuation range determined by the Independent Adviser.

RothschildCo Malaysia Sdn Bhd (Rothschild & Co) was commissioned by the IJM Board as the financial adviser to the IJM Board for a valuation exercise, as part of its internal evaluation. Rothschild & Co assessed the IJM’s indicative equity value at RM16.81 billion to RM19.72 billion, equivalent to RM4.80 to RM5.63 per share.

While the IJM Board’s recommendation is guided by the opinion of the Independent Adviser, it also notes that the independent valuation by Rothschild & Co, which serves as a secondary reference, indicates a value materially above the offer price of RM3.15 per share.

Offer Mechanics

Under the proposed offer structure, comprising 90 per cent Sunway shares and 10 per cent cash, IJM shareholders would transition into a 20.6 per cent minority position within the enlarged Sunway Group. This structure effectively trades direct ownership of IJM’s high-growth portfolio for a diluted stake in a larger entity. Consequently, future value realisation would no longer be driven by IJM’s standalone performance, but would instead become dependent on Sunway’s broader strategic direction.

Strategic Context

The IAC highlights that the valuation disparity must also be viewed in the context of IJM’s current investment cycle. IJM is currently at a turning point, with several of the Group’s key assets transitioning from development into operational phases. These include the West Coast Expressway (WCE), scheduled for completion this year, the New Pantai Expressway (NPE) extension targeted for completion in 2029, and prime UK developments such as 88 Royal Mint Street and 25 Finsbury Circus still being constructed. As these assets move into full operation, they are expected to contribute more meaningfully to earnings and cash flow.     

Crucially, this creates a fundamental mismatch in asset maturity profiles. While Sunway’s portfolio is characterised by mature, earnings-generating assets, IJM’s key projects are in the earlier stages of their value cycle. Consequently, comparisons based solely on current margins or earnings do not fully capture the significant valuation upside set to be realised as these assets move into full operation.

The IJM Board unanimously concurs with the Independent Adviser’s conclusion that the offer is not fair and not reasonable, and notes that the current stage of IJM’s investment cycle is an important consideration when assessing the underlying value of the Company.

“Many of IJM’s key assets are now moving from an investment phase into their operational phase. As these projects come onstream, their earnings contribution will become increasingly visible,” said Dato’ Lee Chun Fai, Group CEO & Managing Director.

“Accepting the offer at this stage would mean exiting before the value of these assets is fully realised. Our focus remains on executing our strategy and delivering the value of the portfolio we are building,” said Dato’ Lee.

Business Momentum

IJM’s strategic runway remains intact and continues to maintain strong operational momentum. The Group currently has a RM16.6 billion construction order book, with industrial buildings accounting for 39 per cent of the outstanding order book in Malaysia and Singapore. The Group has also achieved the higher end of its FY2026 replenishment target, securing approximately RM8 billion in new contracts, while maintaining a RM17 billion tender book.

The Group has also expanded into the data centre and high-tech industrial sectors, which now represent the fastest-growing segment of its portfolio. The Group is currently executing more than RM3.5 billion in data centre-related projects, including a RM2.1 billion project in Elmina Business Park and a RM1.4 billion fast-track facility in Johor.

IJM also maintains a strong balance sheet with prudent net gearing, providing capacity to support continued expansion across its core businesses.

“As several of the Group’s key assets approach operational maturity, IJM intends to pursue a more active pure-play monetisation strategy to unlock value from these investments and help bridge the valuation gap highlighted in the IAC.”

“With our long track record in advancing national infrastructure and economic development, retaining ownership of these assets allows shareholders to participate in the value they are expected to generate as they move into full operation,” concluded Dato’ Lee.

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About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality.

The Group presently has a market capitalisation of around RM9.05 billion and as of December 2025, the Group employed around 3,500 employees and had total assets of RM22.8 billion.

For more information, visit www.ijm.com

For media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 12 607 6121

Mr. Shane Guha Thakurta, Investor Relations, at shane@ijm.com or + 60 3 7985 8041