IJM likely to exit Scomi if bond deal falls through

PETALING JAYA: Construction giant IJM Corp Bhd may sell down its 9% stake in Scomi Group Bhd if the latter isn't able to vote through the issuance of convertible debt papers to the former, according to sources.

Recall that as part of the deal involving IJM acquiring an initial 9% in Scomi Group in September, the two parties agreed that Scomi Group will issue an additional RM110mil worth of debt papers to IJM, which can be converted into another 15% of equity in Scomi Group. This would have put IJM firmly in control of Scomi Group.