In a filing with Bursa Malaysia on Wednesday, Sunway said: “The board of directors of Sunway wishes to clarify that the proposed offer is proceeding in accordance with the Rules on Take-overs, Mergers and Compulsory Acquisitions issued by the Securities Commission Malaysia.”
“The proposed offer is subject to the approval of the shareholders of Sunway to be sought at an EGM of Sunway to be convened,” it added, as quoted by The Edge Malaysia.
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Sunway Group’s logo is seen on its headquarters in Malaysia. Photo from the company’s website |
The reassurance follows concerns from analysts that the firm’s bid for IJM could be delayed or even abandoned after the Malaysian Anti-Corruption Commission earlier this week disclosed an investigation into IJM, linked to allegations of money laundering involving RM2.5 billion.
The probe stems from an earlier investigation by the U.K.’s Serious Fraud Office into suspected corruption and money laundering linked to multibillion-ringgit investment transactions linked to two IJM executives, according to Channel News Asia.
MACC has so far frozen RM15.8 million held across 55 private and company bank accounts and recorded nine statements, including from two members of IJM’s top management, national news agency Bernama reported on Wednesday.
IJM has denied allegations of money laundering and reports that it is being investigated by U.K. authorities. It said the asset freeze affected fewer than 10 of its bank accounts and did not disrupt its day-to-day operations.
Roughly a week before the probe was opened, Sunway proposed a share-and-cash deal worth over RM11 billion to acquire the builder.
The diversified group has interests spanning construction, education, healthcare, infrastructure and real estate. It is controlled by Cheah, one of Malaysia’s wealthiest billionaires, whose net worth is estimated at $4.5 billion by Forbes.
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Jeffrey Cheah, chairman and founder of Sunway Group. Photo from the company’s website |
IJM, meanwhile, has a broad portfolio covering construction, property and infrastructure, and including some major highways and bridges across Malaysia, such as the West Coast Expressway.
If completed, the deal could create one of the largest firms on the country’s stock exchange with a projected market capitalization of RM47.7 billion.
