KUALA LUMPUR, March 13 — IJM Corporation Bhd’s board has urged shareholders to reject Sunway Bhd’s takeover bid after an independent adviser concluded that the offer is “not fair” and “not reasonable”.

In a circular cited by The Edge Malaysia, independent adviser M&A Securities said Sunway’s offer price represents a discount of up to 51 per cent to the estimated value of IJM shares.

The adviser added that the offer was unreasonable given that IJM’s shares are liquid and shareholders who retain their stakes can continue to participate in the company’s future growth without accepting the takeover.

M&A Securities therefore advised IJM’s board to recommend that shareholders reject the proposal.

“The board has concurred with the conclusion and recommendation of M&A Securities that the offer is not fair and not reasonable,” IJM said. 

“Accordingly, the board unanimously recommends that the holders reject the offer.”

IJM is one of Malaysia’s largest construction and infrastructure groups, with businesses spanning property development, toll roads, ports and international projects. 

Sunway, meanwhile, is a diversified conglomerate with interests across property, construction, healthcare and education.

The takeover bid is being closely watched in Malaysia’s corporate sector, where consolidation moves among major property and construction groups have picked up pace in recent years.