Billionaire Jeffrey Cheah’s Sunway moves ahead with $2.7 billion IJM takeover despite money laundering probe

Sun road– controlled by Malaysian billionaire Jeffrey Chea– is going ahead with its 11 billion ringgit ($2.7 billion) takeover bid for Kuala Lumpur-listed construction company IJM, which is facing a money laundering probe.

The proposed acquisition is in compliance with the SEC’s rules on takeovers, mergers and mandatory takeovers, Cheah’s company said in a statement to Bursa Malaysia. The takeover bid, which would make Sunway the country’s largest real estate and construction company, has also sparked public criticism.

Shares of IJM rose as much as 8.4% in Kuala Lumpur on Thursday, after falling more than 10% since the money laundering news broke. Sunway shares fell less than 1% since the IJM offer was announced on January 12.

IJM is facing an investigation by Malaysia’s anti-graft agency over allegations of a 2.5 billion ringgit money laundering scheme involving the company, following a separate investigation in the United Kingdom. IJM said it is cooperating with Malaysian authorities and is not aware of any British investigation, describing the allegation as false.

IJM chairman Krishnan Tan met with Malaysian Anti-Corruption Commission officials on Tuesday and continues to fully cooperate with authorities, along with other employees assisting in the ongoing investigation, the company said.

News of the money laundering investigation broke on Monday, a week after Sunway announced it proposed acquisition offer to buy the entire 3.5 billion shares of IJM at 3.15 ringgit each in a cash and stock transaction. The investigation came after Sunway’s offer sparked criticism that it could dilute the government’s equity stakes and the rights of indigenous investors.

Immediately real time net worth With an income of US$4.5 billion and one of Malaysia’s richest, Cheah is looking to expand his construction business as he expands the group’s real estate assets across the Causeway in Singapore, where Sunway has agreed to buy Singaporean developer MCL Land for S$739 million ($578 million) from Hongkong Land Holdings as it deepens investment in one of the world’s most resilient property markets.

The self-made tycoon transformed Sunway from an obscure tin mining company over the past fifty years into one of the country’s largest conglomerates with interests in construction, education, healthcare, infrastructure and real estate.