Sunway says MACC has cleared it of wrongdoing in IJM takeover deal

KUALA LUMPUR (March 27): Sunway Bhd (KL:SUNWAY) said it has been cleared by the Malaysian Anti-Corruption Commission (MACC) regarding its takeover offer for IJM Corporation Bhd (KL:IJM).

During a press conference on Thursday, Sunway Group founder Tan Sri Dr Jeffrey Cheah (pictured) announced that the company had recently received formal notification from the commission.

"We, Sunway, had just received a letter from the MACC, clearing our name; that their investigation on Sunway is all cleared for the Sunway-IJM deal," said Cheah, as he announced that Sunway shareholders are convinced of the deal's merits and remain supportive of the acquisition.

The investigation was first made public on March 4, when MACC chief commissioner Tan Sri Azam Baki said the commission had opened an investigation paper on Sunway's takeover offer for IJM after receiving reports on the offer.

The commission was looking at whether there were elements of "corruption, abuse of power or violations of governance" in the matter. Azam also noted the matter was a concern to the agency as it involves public funds, as shareholders of both companies include government-linked companies.

At the time, Azam revealed that the commission had three ongoing investigations linked to IJM, including the Sunway-IJM deal, which was made on Jan 12 to acquire all 3.5 billion shares in IJM at RM3.15 per share. The RM11 billion offer — comprising 10% cash and 90% new Sunway shares — is conditional upon Sunway getting at least 50% acceptance from IJM shareholders by April 6.

Of the other two IJM-linked probes, one involves an allegation of bribery linked to a project, for which the commission had called in "the related chairman" for questioning. The other involves an alleged RM2.5 billion money laundering scheme and overseas asset transaction, which led to a raid on IJM's offices in January and the freezing of several bank accounts. IJM has refuted these allegations.

IJM also issued a bourse filing on March 24 stating that it had received a letter from the MACC clarifying that the commission's investigation was "confined to several individuals associated with IJM, and not the company itself".

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