IJM said in a Bursa Malaysia filing that officers from the Malaysian Anti-Corruption Commission and the Inland Revenue Board visited its offices on Monday to gather information as part of their probe into allegations of money laundering involving RM2.5 billion (US$616.8 million), as reported by The Business Times.
It said it would fully cooperate with authorities while remaining focused on ensuring operational stability amid regulatory scrutiny and uncertainty surrounding the proposed deal.
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The logo of IJM is displayed on its office. Photo from IJM Land’s website |
Local media had earlier reported that a senior IJM executive holding the Tan Sri title, one of Malaysia’s highest federal honors, and a company adviser have been named as persons of interest, Channel News Asia reported.
The investigation followed a probe by the UK’s Serious Fraud Office into suspected corruption and money laundering linked to multibillion-ringgit investment transactions involving the duo. Both individuals are believed to be overseas at present.
Azam Baki, MACC’s Chief Commissioner, confirmed that investigations into IJM are ongoing, adding that more information will be released as the case progresses.
A source told national news agency Bernama that the commission is also examining allegations of share price manipulation that reportedly took place when Sunway was in the process of acquiring IJM.
Sunway last Monday announced a share-and-cash deal worth over RM11 billion to acquire the builder.
The conglomerate, with interests in construction, education, healthcare, infrastructure and real estate, is controlled by Cheah, one of Malaysia’s richest billionaires with a current net worth of $4.5 billion, according to Forbes.
IJM’s shareholding, meanwhile, is largely made up of institutional investors, led by Malaysian pension giant Employees Provident Fund, which owns a 16.8% stake.
Both companies are named on Fortune’s Southeast Asia 500 ranking of the region’s largest firms by revenue. Sunway placed 190th with revenues of $1.7 billion in 2024 while IJM ranked 228th with $1.3 billion.
If completed, the deal would create an entity with a projected market capitalization of RM47.7 billion, positioning it as the eighth-largest company on Malaysia’s stock market.
Hong Leong Investment Bank said despite the latest development, the offer will likely remain intact as Securities Commission rules bar an offeror from withdrawing a takeover bid without written approval.
The probe could, however, result in more stringent due diligence requirements, which may slow the completion of the deal, the bank noted, as quoted by the New Straits Times.
News of the investigation sent IJM shares tumbling. The stock opened at RM2.50 on Tuesday, down 5.7% from its previous close of RM2.65. It had lost as much as 16.4% on Monday, The Edge Malaysia reported.
