Malaysia’s anti-corruption agency probes $2.7B IJM takeover bid by billionaire Jeffrey Cheah’s Sunway

“The matter has attracted the commission’s attention as it involves public funds, as several government-linked companies hold significant shares in IJM,” chief commissioner Tan Sri Azam Baki said at a news conference on Wednesday, as quoted by The Star.

He said the agency is looking for any “element of corruption, abuse of power, or violation of governance in the matter.”

Sunway in January offered to acquire IJM at RM3.15 per share in a cash-and-share deal that values the builder at RM11 billion.

Days after the bid was announced, MACC opened a probe into IJM over alleged money laundering involving RM2.5 billion believed to have been invested in Britain.

Azam said at the conference that the probe remains ongoing and that the agency is cooperating with the U.K.’s Serious Fraud Office.

He added that another investigation involving the builder is also underway, concerning allegations of bribery linked to one of its projects.

“We have already called several individuals to have their statements recorded and I believe the investigation will take some time to complete,” he said, as quoted by the New Straits Times.

IJM has denied allegations of money laundering and said it was unaware of any probe by U.K. authorities. Last month, it obtained an extension to the deadline for issuing its independent circular on the takeover offer, with the deal now open for acceptance until April 6.

Established in 1983 through the merger of three Malaysian construction firms, IJM’s portfolio includes major highways and bridges across Malaysia, such as the West Coast Expressway.

Its shareholders are mostly institutional investors, led by Malaysian pension giant Employees Provident Fund, which owns a stake of over 20%, according to The Edge Malaysia.

Sunway, meanwhile, is a diversified group with businesses spanning construction, property development, infrastructure, education and healthcare.

It was founded and is controlled by Cheah, one of the country’s richest men with a net worth of $5.3 billion, according to Forbes.

Jeffrey Cheah, founder and chairman of Sunway Group. Photo from the company’s website

For the deal to proceed, it must be accepted by over 50% of IJM shareholders and gain approval from Sunway’s shareholders.

Cheah recently said that Sunway is willing to “walk away” if the deal is rejected by IJM shareholders.

“We are doing it just for commercial purposes. We find that it is an attractive vehicle to have,” Cheah said, describing the deal as a transaction between a “willing buyer, willing seller,” as quoted by Bloomberg.