Berjaya Corporation Sells 4.14% Stake in REDtone for RM29.76 Million
Disposal Made via Direct Business Transaction
Berjaya Corporation Bhd’s (BCorp) 100%-owned subsidiary Juara Sejati Sdn Bhd (JSS) has disposed of 32 million shares representing about 4.14% equity interest in REDtone Digital Bhd for RM29.76 million or 93 sen per share. The disposal was made via a direct business transaction, as announced by BCorp in a filing with Bursa Malaysia.
Consequences of the Disposal
Following the disposal, BCorp and its subsidiaries now hold a total of 283.28 million shares, representing about 36.65% equity interest, in REDtone. The cash proceeds from the disposal will be utilised to repay borrowings and/or as working capital for the BCorp Group. This move enables the group to realise part of its investment in REDtone.
Carrying Amount and Disposal Value
As of October 31, 2024, BCorp Group’s carrying amount for the REDtone shares being sold was 69 sen per share, incurred since December 2014. The disposal value of 93 sen per share represents an increase of 24 sen per share compared to the carrying amount.
No Impact on Financial Performance
The disposal is not expected to affect BCorp’s issued share capital, substantial shareholders’ shareholdings, net assets, earnings, or gearing for the current financial year ending June 30, 2025. However, the disposal is projected to increase the equity (under the consolidation reserve) in the statement of financial position of the BCorp Group by about RM7.68 million.
Conclusion
The disposal of 4.14% stake in REDtone Digital Bhd for RM29.76 million marks a significant move by Berjaya Corporation to realise part of its investment in the company. The cash proceeds will be utilised to repay borrowings and/or as working capital for the BCorp Group, allowing the company to strengthen its financial position.
FAQs
* What was the disposal price of Berjaya Corporation’s 4.14% stake in REDtone Digital Bhd?
+ RM29.76 million or 93 sen per share
* How many shares were disposed of by Berjaya Corporation’s 100%-owned subsidiary Juara Sejati Sdn Bhd (JSS)?
+ 32 million shares
* What is the current equity interest held by Berjaya Corporation and its subsidiaries in REDtone Digital Bhd?
+ About 36.65% equity interest