Sunway Cleared by MACC Over IJM Takeover

Sunway Bhd has been officially cleared by the Malaysian Anti-Corruption Commission over its proposed takeover of IJM Corporation Bhd, removing a major uncertainty surrounding the deal.

Clearance from Authorities

Sunway’s founder, Jeffrey Cheah, confirmed that the company received formal notification from MACC stating that investigations into the takeover have been completed with no wrongdoing found on Sunway’s part.

The probe, initiated earlier in March, was to assess potential issues such as:

• Corruption
• Abuse of power
• Governance violations

Background of the Investigation

The investigation was announced by Azam Baki, who noted concerns due to the involvement of public funds, as both companies have government-linked shareholders.

The takeover offer, announced in January, involves:

• Acquisition of 3.5 billion IJM shares
• Offer price of RM3.15 per share
• Total deal value of approximately RM11 billion
• Payment structure: 10% cash and 90% new Sunway shares

The deal is conditional upon Sunway securing at least 50% shareholder acceptance by early April.

Other Ongoing IJM-Related Probes

MACC had also been investigating two other matters linked to IJM:

• An alleged bribery case involving a project
• A separate alleged RM2.5 billion money laundering and overseas asset transaction

However, IJM clarified that these investigations are focused on specific individuals, not the company itself, and has denied the allegations.

Market Confidence Remains

Following the clearance, Sunway indicated that its shareholders continue to support the takeover, suggesting confidence in the strategic value of the acquisition.

What I Learned

• Regulatory investigations can significantly impact major corporate deals, especially those involving public funds.
• Being cleared by authorities like MACC helps restore investor confidence and reduce uncertainty.
• Large acquisitions often include conditional requirements, such as minimum shareholder acceptance.
• Investigations may target individuals rather than companies, which can limit broader corporate impact.
• Transparency and regulatory oversight are crucial in maintaining good governance in large transactions.
• Even amid investigations, companies may proceed with deals if they believe in the long-term strategic benefits.

Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.

Posted by Yao Mu Realty Sdn Bhd on 27 Mar 26