KUALA LUMPUR: 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 buy 4.61 per cent of Berjaya Land Bhd (BLand) for RM87.4 million.
In a filing to Bursa Malaysia today, BCorp said the 230 million BLand shares will be paid via the issuance of 291.3 million BCorp shares at 30 sen apiece.
BCorp said the acquisition was 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 saidi in the filing.
BCorp and its subsidiaries currently hold a total of 3.61 billion BLand shares or a 72.28 per cent interest.
Upon completion of the acquisition, the group will own 76.89 per cent of BLand.
The group expects to complete the exercise in the first quarter of the year.