Sunway EGM votes to proceed with IJM takeover

 Sunway Bhd chairman Jeffrey Cheah says MACC cleared the board of wrongdoing in its probe into the proposed deal.

Sunway Bhd chairman Jeffrey Cheah said virtually all present at the extraordinary general meeting today voted in favour of maintaining the offer.

KUALA LUMPUR:

 Sunway Bhd shareholders voted to proceed with the group’s proposed takeover of IJM Corporation Bhd at an extraordinary general meeting (EGM) today, founder and chairman Jeffrey Cheah said.

Cheah said virtually all present at the meeting voted in favour of maintaining the offer.

“At the EGM, 99.27% voted in favour of the deal. I would say that is as good as 100%, as the remaining 0.73% were not present,” he said at a press conference at Sunway Resort Hotel in Petaling Jaya.

He also said the group had received a letter from the Malaysian Anti-Corruption Commission (MACC) clearing the board of any wrongdoing in its investigation into the proposed deal.

Cheah defended the proposed acquisition, saying the offer would allow IJM shareholders to remain invested in the enlarged group as it comprised 10% cash and 90% Sunway shares.

“We are not paying cash and kicking them out. They will remain with us in the larger Sunway group,” he said.

On Jan 12, Sunway made a conditional voluntary takeover offer for all 3.51 billion shares in IJM at RM3.15 per share, with an acceptance deadline of April 6.

Earlier this month, Permodalan Nasional Bhd (PNB), IJM’s second-largest shareholder, decided not to accept Sunway’s offer for its 13.5% stake in the conglomerate.

The offer is conditional on Sunway receiving acceptances of more than 50% of IJM’s voting shares by the closing date. However, Sunway requires 90% shareholder approval to compulsorily delist IJM and take it private – a threshold unattainable with PNB rejecting the deal.

Cheah said Sunway had already received acceptances for a stake roughly equivalent to PNB’s 13.5% holding, suggesting other IJM shareholders had effectively offset the fund’s rejection.

He said he remained confident Sunway could secure enough acceptances before the deadline.

He added that Sunway would not sweeten the offer if it failed to secure the required threshold. “We have given the best offer we can. If it is not accepted, we will walk away.”

IJM is essentially owned by various institutional funds, with its biggest shareholder being EPF, which holds a 16.8% stake.

MACC chief commissioner Azam Baki had said that the anti-graft agency was investigating the proposed takeover, focussing on possible bribery and governance issues. - FMT