A planned $2.7bn acquisition of Malaysian building and property company IJM Corporation by Chinese-Malaysian conglomerate Sunway Group has failed following an independent review and a collapse in IJM Corporation’s shareholder confidence.
Following an extraordinary general meeting earlier this year, 99% of IJM shareholders voted in favour.
But then an independent review of the deal by M&A Securities found that it may have undervalued IJM, Nikkei Asia reported.
It also called into question the terms of the deal, which would have seen 90% of the payment made in newly released Sunway Group shares with the remainder in cash.
In the end, just 33% of IJM shareholders voted in favour of Sunway Group’s takeover, well below the 50% threshold needed to meet the terms of the deal.
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