KUALA LUMPUR: Berjaya Corp Bhd (BCorp) is proposing to buy 230 million shares or 4.61 per cent stake in Berjaya Land Bhd (BLand) for RM87.40 million.
In an exchange filing today, BCorp said the proposed acquisition would enable the group to further consolidate the results of BLand and provide an opportunity for BCorp to further capitalise on the two companies’ growth potential.
“It represents an opportunity for the BCorp Group to further increase its equity interest in BLand via the acquisition of a sizeable stake of 4.61 per cent stake in Bland without having to incur any cash outlay as the purchase consideration will be fully satisfied via the issuance of the consideration shares,” it said.
BCorp said the proposed acquisition would also eliminate any possible material decrease in the market prices of BLand shares should the sale shares be disposed of in the open market.
The company said the proposed acquisition would result in a dilution to the percentage of shareholdings of the existing shareholders of BCorp due to the issuance of the consideration shares.
“The proposed acquisition may potentially contribute to the growth of the BCorp Group and in turn, result in value enhancement to the security holders of BCorp.”