The Tamesis
Jeffrey Cheah, founder and executive chairman of Sunway Group.
Ian Teh, Forbes Asia
Sunway – Holdings owned by Malaysian billionaires Jeffrey Xie— is acquiring Kuala Lumpur-listed construction company IJM for 11 billion ringgit ($2.7 billion), which is facing a money laundering investigation.
In a statement to Bursa Malaysia, Tse’s said the proposed acquisition is being made in accordance with the Securities and Exchange Commission’s rules on takeovers, mergers and compulsory acquisitions. The takeover bid would make Sunway the country’s largest property and construction company but also sparked public criticism.
IJM shares, which have fallen more than 10% since the money laundering news broke, rose 8.4% in Kuala Lumpur on Thursday. Sunway’s share price has fallen less than 1% since it announced the acquisition of IJM on January 12.
IJM is facing an investigation by Malaysia’s anti-corruption agency over allegations it was involved in a 2.5 billion ringgit money laundering scheme triggered by a separate investigation in the UK. IJM said it was cooperating with Malaysian authorities and was not aware of any UK investigation, calling the allegation inaccurate.
IJM chairman Krishnan Tan met with Malaysian Anti-Corruption Commission officials on Tuesday and continues to cooperate fully with authorities and other employees assisting with the ongoing investigation, the company said.
News of the money laundering investigation broke on Monday, just days after Sunway Group announced its Proposed acquisition Offered to purchase all 3.5 billion shares of IJM at a price of RM3.15 per share in cash and shares. The investigation comes after criticism of Sunway’s proposal, which critics said could dilute the government’s stake and the rights of Bumiputera Malay investors.
with a real time net worth Mr Chia, one of Malaysia’s richest men worth US$4.5 billion, is looking to expand his construction business, extending the group’s real estate business in Causeway Bay to Singapore. Sunway has agreed to acquire Singaporean developer MCL Land from Hong Kong Land Holdings Ltd for S$739 million (US$578 million) as it deepens its investment in one of the world’s most resilient property markets.
The self-made tycoon has spent the past five years transforming Sunway from an obscure tin mining company into one of the country’s largest conglomerates with interests in construction, education, healthcare, infrastructure and real estate.
