IJM Corp Bhd said officers from the Malaysian Anti-Corruption Commission (MACC) and the Inland Revenue Board (IRB) visited its office on Monday (Jan 19) to gather information as part of their review process.
In a filing with Bursa Malaysia, the construction group said it is fully cooperating with the authorities and stressed that its business operations are continuing as normal.
“IJM remains committed to high standards of corporate governance, transparency and integrity. The company will continue to monitor developments and will make the necessary disclosures should there be any material updates,” it said.
When contacted, MACC chief commissioner Tan Sri Azam Baki confirmed that an investigation involving the company is ongoing.
The development comes shortly after Sunway Bhd announced a proposal to acquire IJM in a cash-and-share deal that values the group at slightly more than RM11 billion.
IJM’s share price fell sharply on Monday following reports of the authorities’ visit, sliding as much as 16.4% at one point. The stock hit an intraday low of RM2.34 before paring losses to RM2.65 at 5pm, still down 15 sen or 5.36% from Friday’s close. Year to date, the counter remains up 16.74%.
Bursa Malaysia triggered an intra-day short-selling (IDSS) suspension after the stock dropped more than 15% from its reference price. According to the exchange, IDSS will resume on Tuesday (Jan 20) at 8.30am.
In a separate response, IJM said the IDSS suspension was a standard Bursa mechanism based on price movement, adding that it does not comment on share price fluctuations or market speculation. “Any material developments will be announced via Bursa Malaysia,” the group said.
Sunway had announced on Jan 12 its intention to acquire IJM, offering 31.5 sen in cash and 501 Sunway shares for every 1,000 IJM shares held. IJM has since issued a notification to shareholders on the proposed takeover.
The implied offer price of RM3.15 per share, based on Sunway’s issue price of RM5.65, is below most analysts’ target prices. Even so, several analysts have recommended shareholders accept the offer, citing value crystallisation and potential long-term upside from the enlarged Sunway group.
The proposed acquisition is also taking place alongside Sunway’s plan to list Sunway Healthcare Holdings Bhd on Bursa Malaysia. Sunway plans to distribute 676.04 million Sunway Healthcare shares to its shareholders via a dividend-in-specie, on the basis of one share for every 10 Sunway shares held, with the entitlement date to be announced. After the listing, Sunway’s effective stake in Sunway Healthcare is expected to be diluted from 84% to about 70%.
