IJM continues falling after MACC confirms probe on execs

The anti-graft agency has summoned nine people including two senior IJM executives over an alleged RM2.5 billion money-laundering scheme.

IJM has fallen 8.2% over the past two days, wiping nearly RM770 million off its market capitalisation.

PETALING JAYA:

 IJM Corp Bhd shares continued its downward spiral today after the construction group confirmed the Malaysian Anti-Corruption Commission (MACC) and Inland Revenue Board (IRB) have questioned its executives.

Its shares fell as much as 6% or 16 sen to RM2.49 earlier today before paring its losses to close 3% or 8 sen lower at RM2.57, valuing the company at RM9.37 billion.

The counter tumbled as much as 16.4% yesterday before closing 5.4% lower. Based on its closing price, IJM has fallen 8.2% over the past two trading days, wiping nearly RM770 million off its market value.

Investors have been spooked by reports of MACC probing allegations of a money laundering scheme, and rising opposition to Sunway Bhd’s bid to take over IJM in a mega cash-and-shares deal worth over RM11 billion.

The anti-graft agency has summoned nine people, including two senior IJM executives, to provide statements regarding allegations of a RM2.5 billion money-laundering scheme, MACC chief commissioner Azam Baki said today.

The individuals were called in to give statements at the agency’s headquarters in Putrajaya, starting from 10am today.

“No arrests have been made, and we will conduct a thorough investigation into this case,” Azam said, according to a Berita Harian report.

In its bourse filing late yesterday, IJM acknowledged the MACC and IRB were present at its office to “obtain information as part of their process”.

Takeover bid in jeopardy

Notwithstanding the fallout from the MACC probe, Sunway’s proposed acquisition is also in danger of unravelling after Umno Youth chief Dr Akmal Saleh opposed the takeover as it impinges on “Bumiputera economic interests”.

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

He pointed out that government-linked entities EPF, Perbadanan Nasional Bhd, Retirement Fund Inc (KWAP), Lembaga Tabung Haji, and the Armed Forces Fund Board (LTAT) held almost half of IJM’s shares.

Sunway is controlled by tycoon Jeffrey Cheah, who holds a 0.5% direct interest and a 60% indirect stake in the group.

The Malaysian Businessmen and Industrialists Association has also urged Prime Minister Anwar Ibrahim to intervene in the deal to prevent a “major and historic policy mistake”.

Meanwhile, several research houses have highlighted possible delays, higher execution risk, and regulatory scrutiny on Sunway’s takeover bid in the wake of the probes by MACC and IRB.

Hong Leong Investment Bank said in the “best-case scenario”, the deal could still face delays past the previously planned completion in the third quarter of 2026.

In a worst-case scenario, Sunway could either withdraw the offer in writing to the Securities Commission or fail to get shareholders’ approval at an EGM. Such a move would bar Sunway from making another takeover offer for 12 months, it added.

MBSB Research said the ongoing MACC probe may further complicate the conditional voluntary takeover offer by Sunway and weigh on sentiment for IJM.

However, both research houses reiterated their call for IJM shareholders to accept Sunway’s offer. - FMT