In an announcement on Bursa Malaysia today, Sunway said the proposed takeover will proceed in line with the Securities Commission Malaysia’s rules on takeovers, mergers and acquisitions.

“The proposed offer is subject to the approval of the shareholders of Sunway which will be sought at an extraordinary general meeting to be convened,” it said.

It said it was issuing this statement in light of its proposed takeover and recent reports involving IJM.

In an earlier Bursa filing last week, 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.

Sunway is controlled by its founder and chairman, Jeffrey Cheah, 80, who holds a 0.5% direct interest and a 60% indirect stake in the group.

IJM is essentially owned by various institutional funds, with its biggest shareholder being EPF with a 16.8% stake, followed by Retirement Fund Inc (KWAP) with 9.74%.

Certain quarters have criticised the proposed acquisition, including Umno Youth chief Dr Akmal Saleh and the Malaysian Businessmen and Industrialists Association, with the latter saying it threatened Bumiputera equity, undermined national interests, and undervalued IJM.

The Malaysian Anti-Corruption Commission later launched an investigation into IJM over issues involving corporate governance, procurement processes, financial transactions, and the ownership of assets overseas estimated at about RM2.5 billion.

It is said that the case could derail Sunway’s proposed acquisition of IJM.

IJM has since denied money laundering allegations levelled against two individuals linked to it, including its chairman, Krishnan Tan.

It also said neither the company nor its associates in the UK were aware of an apparent money laundering investigation by the UK’s Serious Fraud Office.