Akmal flags concerns over Sunway’s proposed IJM acquisition

The Umno Youth chief says the proposed takeover may seem like an ordinary transaction, but it involves public, government and Bumiputera economic interests.

 

 

Umno Youth chief Dr Akmal Saleh said if IJM Corp Bhd were to be sold to Sunway Bhd, the Bumiputera stakes in major companies in the country could be lost. (Bernama pic)

PETALING JAYA:

 Umno Youth chief Dr Akmal Saleh has questioned the proposed acquisition of IJM Corp Bhd by Sunway Bhd in a deal worth over RM11 billion, saying that IJM has been profitable and effectively managed.

In a TikTok reel, Akmal said the proposed takeover may seem like an ordinary transaction, but it involves public, government and Bumiputera economic interests.

“If a company is making losses or is poorly managed, we understand (the need for a takeover), no problem.

“But for the record, in the previous year, IJM reported a profit (before tax) of nearly RM964.17 million.

“The conglomerate also recorded a revenue of about RM5.92 billion.”

He said EPF, Perbadanan Nasional Bhd, Retirement Fund Inc (KWAP), Lembaga Tabung Haji, and the Armed Forces Fund Board (LTAT) — all government-linked entities — held almost half of the shares in IJM.

As for Sunway, Akmal said it is controlled by Jeffrey Cheah, who holds a 0.5% direct interest and a 60% indirect stake in the group.

He said that if IJM were to be sold to Sunway, “Bumiputera stakes in major companies in the country could be lost”.

“This could undermine national and Bumiputera interests, especially considering that the Bumiputera stake in Malaysia is already limited.”

He said IJM held assets such as the New Pantai Expressway, the Sungai Besi Expressway, Kajang-Seremban Highway (Lekas) and the West Coast Expressway.

In a Bursa filing on Jan 12, Sunway said it had served notice of its conditional voluntary takeover offer on the IJM board to acquire all of the 3.5 billion IJM shares at RM3.15 a share.

It said the offer price will be satisfied via cash totalling 10% and the remaining 90% in the form of new Sunway shares at an issue price of RM5.65 each.

The offer is conditional on Sunway receiving acceptances of more than 50% of IJM’s voting shares by the closing date.

In the event IJM fails to meet Bursa Malaysia Securities’ public shareholding spread requirement of 25% following the offer, Sunway said it does not intend to address any shortfall and may seek to delist IJM.

Sunway said it intends to continue IJM’s existing businesses, with the company maintained as a separate subsidiary within the Sunway Group.

PM urged to intervene

Separately, the Malaysian Businessmen and Industrialists Association also objected to the proposed acquisition, saying the deal undermines national interests, undervalues IJM and threatens Bumiputera equity as well as public funds entrusted to government-linked investment institutions.

Association president Azamanizam Baharon urged Prime Minister Anwar Ibrahim to intervene in the deal to prevent a “major and historic policy mistake”.

“The deal involves the transfer of strategic national assets using high-risk financial instruments that can negatively impact millions of Malaysians,” he said in a statement yesterday. - FMT