IJM's deputy chief denies board split on Scomi buy

SUBANG JAYA (Oct 19) : IJM Corporation Bhd's (IJM Corp) executive deputy chairman Tan Sri Krishnan Tan today (Friday) clarified that the refusal to participate in the group's employees' share option scheme (ESOS) by the group's non-executive directors (NED) is purely to uphold the highest level of corporate governance.

Earlier this week, IJM Corp has announced that its NEDs rejected to participate in the ESOS programme, which was a part of the group-wide long term incentive plan (LTIP).

The move was seen by certain quarters of the stockbroking fraternity as a split of decision by the board, with regards to the acquisition of 25% stake in Scomi Group Bhd by IJM. This is on the fact that Scomi has lost some ground in recent years in terms of contracts secured.

"The NED's decision not to participate in the ESOS programme is merely to uphold the highest standard of corporate governance in IJM. They don't want to be seen as having personal interests in the group's shares if they accepted the ESOS," said Tan, after IJM Corp's extraordinary general meeting (EGM) to seek shareholders approval on the LTIP today.

On Sept 24, IJM Corp announced the acquisition of approximately 25% of marine and civil engineering company Scomi through private placement and the subscription of the latter's 3-year redeemable bond. The acquisition is worth RM149.3 million.