KUALA LUMPUR: IJM Corp Bhd has issued a detailed clarification on recent media reports and statements by Sunway Bhd representatives regarding the latter's conditional voluntary takeover offer (VTO).
This includes the sequence of events leading up to the announcement and remarks made on pre-offer discussions and strategic alignment.
Responding to reports suggesting that Sunway had formally tabled its offer on Jan 9, IJM clarified that no offer was submitted on that date, and set out the timeline of engagement prior to the Jan 12 announcement.
IJM said its chairman Tan Sri Krishnan Tan and group chief executive officer Datuk Lee Chun Fai received a request on Jan 9 from Sunway chairman Tan Sri Jeffrey Cheah for a meeting, which was scheduled for Jan 12 as Tan was overseas.
On Jan 10, IJM received a letter requesting suspension of trading in its shares, which was carried out on Jan 12 at 9am.
A lunch meeting between both parties took place at 12.30pm on Jan 12, during which IJM said it was informed that a notice of conditional VTO would be served later that day, with no discussion on the substance of the proposal as the offer would be made directly to shareholders.
IJM added that it received the VTO notice at about 4pm the same day via Maybank Investment Bank Bhd, followed by public announcements by both companies in the evening.
On reports that Sunway had engaged with government-linked investment companies prior to the announcement, IJM stressed that any such discussions were conducted without the knowledge or involvement of its board or management.
It also addressed comments suggesting a potential division of business focus between the two companies, where IJM would concentrate on civil construction while Sunway would pursue higher-growth segments such as data centres.
The group said such delineation raises concerns for shareholders.
IJM noted that limiting its participation in certain sectors or contracts may not be in the best interest of remaining shareholders.
Reiterating its position, IJM pointed shareholders to the independent advice circular dated March 13 in which M&A Securities Sdn Bhd concluded that the offer is "not fair and not reasonable", and reaffirmed the board's recommendation to reject the offer.
The company added that shareholders should assess the proposal in the context of IJM's strategic position.
This includes IJM's transition from development to operational phases in key infrastructure concessions, which it said is not fully reflected in short-term earnings comparisons.
IJM urged shareholders to rely on official disclosures, the independent advice circular and its long-term value and growth prospects when evaluating the Sunway offer - NST
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