PUTRAJAYA (March 4): Malaysia’s anti-graft agency said it has opened an investigation paper linked to Sunway Bhd’s (KL:SUNWAY) ongoing takeover offer for IJM Corp Bhd (KL:IJM).

The Malaysian Anti-Corruption Commission has received reports on the offer, its chief commissioner Tan Sri Azam Baki said during a news conference on the updates of its latest investigations at the agency’s headquarters.

Shareholders of IJM include government-linked companies, and “this is a concern to us because it involves public funds”, he said. “We are looking at whether there is element of corruption, abuse of power, or violation of governance in the matter.”

Sunway, in January, launched an offer to acquire IJM in a cash-and-share deal that values the property-and-infrastructure company at RM3.15 per share or RM11 billion. The offer is conditional upon acceptance of 50% plus one share.

The Employees Provident Fund (EPF) holds north of a 20% stake in IJM, followed by Permodalan Nasional Bhd with 13.5%, Retirement Fund Inc (9.64%), Ministry of Finance-owned Urusharta Jamaah Sdn Bhd (2.84%) and Lembaga Tabung Haji (1.47%), based on the latest available public data.

The EPF also owns a 9.45% stake in Sunway.

IJM, in early February, secured an extension to its current March 16 deadline to submit its independent circular on the takeover bid. The offer is open for acceptance until April 6.

Azam said the MACC has another two investigation papers opened on IJM.

One is over an allegation of bribery in relation to a project. “For this we have recently called in the related chairman for his statement to be taken,” Azam said. “Further investigations must be done in this matter.”

The MACC is also still looking into a supposed investigation which Azam said is conducted by the UK’s Serious Fraud Office regarding money laundering totalling RM2.5 billion reported there. IJM has previously rejected allegations of money laundering and said it was unaware of any probe by UK authorities.

MACC is “collaborating with the UK counterparts”, although it has not arrived at any conclusion on the exchange of information on the matter, Azam added. 

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