Berjaya Corp exits Citaglobal stake for RM42.56m in RPT transaction

Berjaya Corp Bhd (BCorp) said its wholly-owned subsidiary, Berjaya Securities Sdn Bhd, has disposed of its entire 46.77 million ordinary shares in Citaglobal Bhd, representing about 8.64% equity interest, for approximately RM42.56 million cash via a direct business transaction.

It said in a Bursa filing yesterday that the shares were sold last Friday (June 19) to Detik Ria Sdn Bhd at RM0.91 per share. Following the disposal, Berjaya Securities ceased to be a shareholder of Citaglobal.

BCorp said the cash consideration was arrived at after taking into account the prevailing market prices of Citaglobal shares at the time of disposal. The group said the transaction enables it to realise its investment in Citaglobal, with proceeds earmarked for working capital purposes, including administrative, marketing and operating costs. 

The carrying value of the Citaglobal shares in the group’s books was RM0.90 per share.

BCorp said the disposal is a related party transaction (RPT) under Bursa Malaysia’s Main Market Listing Requirements as Detik Ria is a major shareholder of BCorp. Johor princess Tunku Tun Aminah Sultan Ibrahim Ismail, who is BCorp’s non-executive chairman, a director of Berjaya Securities, and chairman and deemed major shareholder of Detik Ria, abstained from board deliberations and voting on the transaction.

The group said the disposal is not expected to have any material effect on its net assets, earnings or gearing for the financial year ending June 30, and will not affect its issued share capital or substantial shareholders’ shareholdings. 

The board, excluding the interested director, said the transaction is in the group’s best interest, while the audit committee said it is fair, reasonable, on normal commercial terms and not detrimental to minority shareholders.

On a separate note, in a Bursa filing on June 4, Citaglobal’s joint venture with Varia Bhd to develop the RM657 million Citaglobal Tower along Jalan Tun Razak, Kuala Lumpur became unconditional following the fulfilment of all conditions precedent, with the 1.58-acre leasehold project — which will feature a Grade A office tower, serviced apartments, shops and a podium car park — expected to deliver an estimated RM118 million land consideration package and RM26.7 million gain to Citaglobal. 

Its shareholders at a June 3 extraordinary general meeting had also approved a RM42.1 million private placement to Berjaya Securities to fund the group’s Gebeng land outlay (in Kuantan, Pahang) business expansion (including renewable and bioenergy ventures), and working capital, as the group emphasised that the development remains subject to regulatory and planning approvals and will be updated as milestones are met. 

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