KUALA LUMPUR (Jan 31): Berjaya Corp Bhd (BCorp) and its wholly-owned subsidiary Juara Sejati Sdn Bhd have entered into an agreement with Penta Master Fund Ltd, PCM Industrial LP and Penta Asia Long/Short Fund Ltd to acquire 4.61% of Berjaya Land Bhd (BLand) for RM87.4 million.
In a bourse filing yesterday, the group said the 230 million Berjaya Land shares will be acquired for a total purchase consideration of RM87.4 million or 38 sen per share, to be fully satisfied via the issuance of 291.3 million BCorp shares at an issue price of 30 sen apiece.
The stake purchase comes on the heels of an earlier announcement by BCorp executive chairman Tan Sri Vincent Tan of plans to restructure his business empire as shares of the group’s listed entities BLand and 7-Eleven Malaysia Holdings Bhd, are largely undervalued, for instance.
He indicated the restructuring could involve the sale of assets, the privatising of 7-Eleven Malaysia and BLand, and the listing of BLand’s hotel assets on the Singapore Exchange.
As at Jan 29, BCorp and its subsidiaries held a total of 3.61 billion BLand shares, or a 72.28% interest, and upon completion of the stake acquisition, will own 76.89% of BLand.
BCorp said the acquisition is an opportunity for the group to increase its stake in BLand without having to incur any cash outlay, thus mitigating any immediate impact to its cashflow for day-to-day operations and avoiding any incurrence of interest from bank borrowings.
“The proposed acquisition will eliminate any possible material decrease in the market prices of BLand shares should the Sale Shares be disposed of in the open market.
“The proposed acquisition will not only mitigate such risk, while at the same time enable the BCorp group to increase its equity participation in the future growth and prospects of the BLand group,” it said.
The group expects to complete the exercise within the first quarter of 2019. — theedgemarkets.com
TOP PICKS BY EDGEPROP
CornerLot Puncak Jalil, Seri Kembangan
Seri Kembangan, Selangor