Showing posts with label bcorp. Show all posts
Showing posts with label bcorp. Show all posts

Friday 14 January 2011

A Brief Look at Berjaya Corporation Berhad: A very complicated conglomerate

Berjaya Corporation Berhad Company

Business Description:
Berjaya Corporation Berhad is an investment holding company and is engaged in the provision of management services. The principal activities of the Company and its subsidiaries include financial services; marketing of consumer products and services; restaurants; property development and investment in properties; development and operation of vacation time share, hotels and resorts, water theme park and operating of a casino; operations of toto betting; leasing of online lottery equipment; manufacture and distribution of computerized lottery and voting systems; publication, printing and distribution of daily newspaper; manufacturing, and investment holding and others. During the fiscal year ended April 30, 2009 (fiscal 2009), the Company acquired 100% interest in Berjaya North Asia Holdings Pte Ltd (BNAH). In September 2009, the Company announced that acquisition of a wholly owned subsidiary, ecosway Japan K.K.

1Q11 Turnover:
Toto betting operations 47.8%
Financial services 8%
Property investment & development 2.8%
Hotel & resort 4.2%
Marketing 32.8%
Others 4.4%


2002 EPS -106 DPS 0.0
2003 EPS -80.6 DPS 0.0
2004 EPS 15.9 DPS 0.0
2005 EPS -30.9 DPS 0.0
2006 EPS -2.8 DPS 0.0
2007 EPS 4.0 DPS 2.9
2008 EPS 2.8 DPS 4.3
2009 EPS 3.7 DPS 3.3
2010 EPS 2.1 DPS 1.0
1H11 EPS 4.85 DPS 5.0(Proposed)

Current Price (7/1/2011): 1.23
Market Cap: 5,179,003,560
Shares Outstanding: 4,210,572,000
Closely Held Shares: 1,953,945,595

Estimated EPS for FYE 2011 = 2*4.85 = 9.7 sen
Projected PE for FY 2011 = 12.7 x

Historical
5 Yr
PE range 13.3 - 41.6
DY range 6.6% - 1.8%

10 Yr
PE range 11.3 - 34.3
DY range 3.3% - 0.9%






Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
30-Dec-1030-Apr-11231-Oct-101,719,909137,4271.97-
29-Sep-1030-Apr-11131-Jul-101,744,567187,3902.88-
30-Jun-1030-Apr-10430-Apr-101,887,330253,7383.41-
31-Mar-1030-Apr-10331-Jan-101,660,417-97,041-3.72-






Capital Changes
2010 25/1000 Distribution of BjMedia shares
ICULS Amount 233.53m Maturity 30/10/2015 Rate 0% Conv. Pr. RM 1.00

Monday 7 June 2010

Flash: Govt yet to issue sport betting licence

Flash: Govt yet to issue sport betting licence

Written by Chua Sue-Ann
Monday, 07 June 2010 18:04


KUALA LUMPUR: The government has yet to issue a sports betting licence and it has also yet to finalise the terms of the licence to Ascot Sports Sdn Bhd, says Prime Minister Datuk Seri Najib Razak.

He said this in a written reply in Parliament on Monday, June 7.


http://www.theedgemalaysia.com/political-news/167463-flash-govt-yet-to-issue-sport-betting-licence.html

Thursday 13 May 2010

BCorp to buy 70pc of Ascot for RM525m

BCorp to buy 70pc of Ascot for RM525m


2010/05/12

BERJAYA Corporation (BCorp) Bhd has announced plans to acquire a majority stake in Malaysia's first legalised sports betting operation.

In a statement, the company said its chairman and chief executive officer, Tan Sri Vincent Tan, has offered to sell 70 per cent of his company Ascot Sports Sdn Bhd to BCorp for RM525 million in cash.

Ascot Sports has a paid-up share capital of RM80 million comprising shares of RM1 each and based on the sale price, the price per share is RM9.375.

"Ascot Sports has been re-issued the sports betting license by the Ministry of Finance which was first issued in 1987. Ascot Sports has the first-right-of-refusal in the event the Government decides to allow sports betting which it has now in view of the rampant illegal book making activities being conducted," BCorp said.

Tan has agreed to guarantee that the company will make a cumulative after tax profit of at least RM375 million for the first 3 years of operations.

To back this profit guarantee, he has offered to deposit RM81.25 million worth of listed securities and BCorp will withhold RM125 million cash from the total consideration of RM525 million which will be released annually upon achievement of profits proportionate to the guarantee.

Hence, the initial consideration will be RM400 million.

BCorp has also announced its proposal to call a rights of 8.0 per cent ICULS on the basis of one RM1 nominal amount 8.0 per cent ICULS for every eight BCorp shares held on the entitlement date.

This rights issue could potentially raise more than RM0.5 billion.

The 8.0 per cent ICULS will have a tenure of 10 years and are convertible at par by surrendering one RM1 8.0 per cent ICULS for one new BJ-Corp share of RM1 each.

A portion of the funds raised will be used to pay the initial consideration of RM400 million with the remaining to be deployed for working capital of the Group.

BCorp said Tan has undertaken to subscribe to his and his private companies’ entitlements in full which would amount to at least RM400 million.

"Tan Sri Vincent Tan will not net in any cash as he will reinvest the entire initial consideration to be received to honour his rights issue obligations," the statement added.

Ascot Sports is set to become the next big money spinner for BJ-Corp.

Comparing examples in Singapore and Hong Kong where legalized sports betting has been in operation for a number of years, the market is seeing consistent double digit compound growth rates, BCorp said.

The Hong Kong Jockey club for instance had revenues of about HK$35.0 billion (about RM15.0 billion) whilst Singapore Pools revenue is estimated at a few billion Singapore Dollars.

"By some estimates, the illegal sports betting market in Malaysia is thought to be as much as RM20 billion per annum. This represents a tremendous loss of tax revenue to the Government which Ascot Sports hopes to be able to mitigate."

"Based on the RM375 million profit guarantee, the net profit averages at about RM125 million per annum. At the implied value of RM750 million for 100 per cent of Ascot Sports, the acquisition PE multiple is about 6.0x, which is an exceptionally low multiple given the enormous potential for the industry.

"The Board of BCorp expressed its gratitude to Tan Sri Vincent Tan for having offered this remarkable 'Sweetheart' deal to the Company. The Board recognizes that typically, one would probably have to pay a high double digit PE multiple with no profit guarantee if such a business is sold with an established earnings track record," the company said.

AmInvestment Bank has been appointed the Main Adviser whilst OSK Investment Bank has been appointed the Independent Adviser.

http://www.btimes.com.my/Current_News/BTIMES/articles/20100512201745/Article/index_html

The deal:
  1. BCorp to buy 70% of Ascot from Vincent Tan for RM 525 million in CASH.
  2. Tan has agreed to guarantee that the company will make a cumulative after tax profit of at least RM375 million for the first 3 years of operations.
  3. BCorp will withhold RM125 million cash from the total consideration of RM525 million which will be released annually upon achievement of profits proportionate to the guarantee.
  4. BCorp to propose rights issue to raise more than RM 614.5 million.
  5. Rights issue will be used to pay Vincent Tan for the Ascot shares (RM 400 million) and the rest for working capital.
  6. Tan has undertaken to subscribe to his and his private companies’ entitlements in full which would amount to at least RM400 million.
  7. Tan will not net in any cash as he will reinvest the entire initial consideration to be received to honour his rights issue obligations.

Before the exercise
  • Vincent Tan owns Ascot 100%
  • BCorp owns 0% of Ascot
After the exercise

Vincent Tan owns 
  • 30% of Ascot and RM 525 million cash.  
  • RM 125 million cash is held by BCorp to be released in stages. 
  • RM 400 million cash is used to subscribe to his portion of the rights issue (ICULS). 
  • Tan will not need to fork out cash as he will reinvest the entire initial consideration to be received from his disposal to subscribe to the rights issue.
BCorp Company
  • owns 70% of Ascot.  
  • owes RM 614.5 million through rights issue in form of ICULS @ 8%.
BCorp minority shareholders
  • own BCorp which has debt (ICULS) of RM 614.5 million and asset of  70% of Ascot
  • give out of their pocket RM 214.5+ million to subscribe to their portion of the rights issue (ICULS) which is effectively a loan to be repaid at a later date.

Wednesday 31 March 2010

Berjaya Corp posts net loss of RM155m in 3Q

Berjaya Corp posts net loss of RM155m in 3Q
Written by Joseph Chin
Wednesday, 31 March 2010 18:04

KUALA LUMPUR: Berjaya Corp Bhd posted net loss of RM155.12 million in the third quarter ended Jan 31, 2010 (3QFY10), mainly due to investment related expenses of RM162.05 million and also weaker hotels and resorts business.

It told Bursa Malaysia on Wednesday, March 31 that revenue was RM1.66 billion while pre-tax loss was RM48.75 million. Loss per share was 3.72 sen. The investment related expense surged to RM162.05 million in 3QFY10 from RM21.02 million in 3QFY09.

In the previous corresponding quarter, it made net profit of RM17.94 million on the back of RM1.73 million in revenue. Earnings per share was 0.47 sen.

BCorp said in 3QFY10 the Group recorded a decrease in revenue of 4%. This was unlike 3QFY09 where BCorp enjoyed higher sales due to the Chinese Lunar New Year festivity that fell in January 2009, resulting in high festive sales for the gaming business operated by Sports Toto (Malaysia) Sdn Bhd and the strong sales registered from the Mega 6/52 game.

"In the current financial year, the Chinese Lunar New Year festivity fell in the month of February 2010. Apart from this, the hotels and resorts business was adversely affected by cutbacks in business travels due to the global economic downturn," it said.

For the nine months ended Jan 31, 2010, it posted net loss of RM61.43 million versus net profit of RM61.50 million in the previous corresponding period. Revenue was RM4.89 billion versus RM4.83 billion.

"The increase in the current period's revenue mainly resulted from the higher contributions from the consumer marketing business and higher brokerage income (from stockbroking business), due to the more active stock market. The performance is all the more commendable as the current period did not have the benefit of the
traditional Chinese Lunar New Year festivity which was in February 2010," it said.

BCorp said excluding the non-cash equity dilution effect of RM208.69 million, the group's pre-tax profit would have been RM522.62 million, showing a 57.1% increase over the preceding year corresponding period.

This increase was mainly contributed by Cosway, (benefiting from its revamped business model from retail to free franchise hybrid outlets in Thailand, Korea and Australia, coupled with the introduction of new products and attractive monthly promotions) and the recognition of negative goodwill as well as write-back of impairment in value of investment in associated companies and other investments.

http://www.theedgemalaysia.com/business-news/162810-berjaya-corp-posts-net-loss-of-rm155m-in-3q.html