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Berjaya Corporation To Up Stake In Berjaya Land By 12%
Malaysia Daily Bulletin | 03 December 2015
  • Berjaya Corporation (BCorp) is proposing to increase its stake its 63.1 percent-owned subsidiary Berjaya Land (BLand) to 75.1 percent, through the acquisition of an additional 12 percent stake for RM419.1 million or RM0.70 per BLand share.
  • The purchase consideration will be satisfied by RM65.9 million in cash and the issuance of RM353.2 million 10-year 2 percent irredeemable convertible unsecured loan stocks at 100 of its nominal value together with 706.5 million free detachable warrants in BCorp.
  • The shares to be acquired will come from Berjaya Group founder tycoon Tan Sri Vincent Tan Chee Yioun, as well as Penta Investment Advisers.

Significance: BCorp is of the view that the proposed acquisition would enable it to raise its equity interest in BLand at a reasonable value, as it believes there is potential capital appreciation in the properties held by the BLand, and is in particular, optimistic about the on-going property development projects that are expected to contribute positively to future earnings.

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