KUALA LUMPUR (June 4): Tan Sri Vincent Tan Chee Yioun-controlled Berjaya Corp Bhd (BCorp) is seeking shareholder ratification for the disposal of its beneficial interest in Four Seasons Hotel & Hotel Residence in Kyoto, Japan to Godo Kiasha Tigre (GKT) for 50.79 billion Japanese Yen (RM2.06 billion) that is expected to net it an estimated gain on disposal of RM649.41 million.

The group had in February this year announced the proposed disposal.

Subsequently, on March 10, it said pursuant to the disposal, Berjaya Kyoto Development Kabushiki Kaisha (BKD) which is another subsidiary of Berjaya Corp had entered into a leaseback agreement of the hotel.

BCorp said that as part of the proceeds from the disposal will be used towards part repayment of its bank borrowings, this will give rise to interest savings as well as improve its financial position.

“The disposal will also unlock capital resources that are tied up in long term assets, thus improving the cash position of the Berjaya Corp Group and providing the Berjaya Corp Group with financial flexibility for its operations and future investments as and when they arise.

The leaseback will ensure that there will be no interruption to the existing operations of the Hotel which is managed by BKD,” it said.

It said, the significant reduction of the occupancy rate of the Hotel has adversely impacted the performance of the Hotel and in turn affected the profitability of the hotels and resorts business segment of the Berjaya Corp Group.

Hence, the business performance of the Hotel is expected to be challenging in the subsequent quarters, said BCorp.

“There can be no assurance that any prolonged impact from the occurrence of these unpredictable events will not seriously interrupt the operations of the Hotel which may have a material adverse effect on the performance of the Hotel and in turn will affect the ability of BKD to fulfil its future rental obligations pursuant to the terms and conditions of the Lease Agreement.

B Corp said it believes that the business of the Hotel will recover gradually to the pre-pandemic levels over the long term and the revenue generated from the Hotel would be sufficient to allow BKD to fulfil its future rental obligations pursuant to the terms and conditions of the Lease Agreement.

At 10.45 am, shares in Berjaya Corp rose half a sen or 2.63% at 19.5 sen, valuing the Group at RM930.11 million. It saw some 2.34 million shares traded.

Stay safe. Keep updated on the latest news at www.EdgeProp.my

Click here for more property stories. 

  1. BCorp posts net loss in 4Q on higher tax expenses
  2. Vincent Tan obtains temporary restraining order against Kedah MB
  3. BFood acquires 1.07% interest while BLand increases stake in 7-Eleven