PETALING JAYA: Berjaya Corp Bhd (BCorp) is acquiring a 4.61% stake in Berjaya Land Bhd (BLand) for RM87.4 million or 38 sen per share.
The proposed acquisition will be fully satisfied via the issuance of about 291.3 million new BCorp shares at an issue price of 30 sen per share.
The purchase price of 38 sen represents a 49% premium against BLand’s today closing price of 25.5 sen.
Upon completion of the proposed acquisition, BCorp’s shareholding in BLand will increase to 76.89% from 72.28% as at Jan 29, 2019.
BCorp told Bursa Malaysia that the group and its wholly owned subsidiary Juara Sejati Sdn Bhd had entered into a conditional share sale agreement with Penta Master Fund Ltd, PCM Industrial LP and Penta Asia Long/Short Fund Ltd for the proposed acquisition.
BCorp said the proposed acquisition represents an opportunity for the group to further increase its equity interest in BLand without having to incur any cash outlay as the purchase sum will be fully satisfied via the issuance of new BCorp shares, thereby mitigating any immediate impact to its cashflows for day-to-day operations and avoiding any incurrence of interests via 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.”
Barring unforeseen circumstances, BCorp said the proposed acquisition is expected to be completed in the first quarter of 2019.
