Malaysia Sport Betting : BCorp To Acquire 70 Per Cent Stake In Ascot Sports
BCorp To Acquire 70 Per Cent Stake In Ascot Sports For RM525.0 Million Cash Berjaya Corp Bhd (BCorp) is set to acquire the 70 per cent majority stake in Malaysia's first legalised sports betting operation, Ascot Sports Sdn Bhd, for RM525.0 million in cash. The company has entered into a conditional sale and purchase agreement with Tan Sri Vincent Tan Chee Yioun, a major shareholder of BCorp for the 56.0 million shares in Ascot Sports. Tan owned 70 per cent of Ascot with the balance held by his son, Datuk Robin Tan Yeong Ching, BCorp said in a filing to Bursa Malaysia Wednesday.
To underscore the value of Ascot Sports, Tan has agreed to guarantee that the company will make cumulative profit after tax of at least RM375.0 million for the first three years of operations. To back this profit guarantee, Tan has offered to deposit RM81.25 million worth of listed securities and Berjaya Corp will withhold RM125.0 million cash from the total consideration of RM525.0 million, which will be released annually upon achievement of profits proportionate to the guarantee. BCorp is also proposing to undertake a renounceable rights issue up to RM614,455,933 nominal value of Irredeemable Convertible Unsecured Loan Stocks (ICULS) on the basis of one RM1.00 nominal value of ICULS for every eight BCorp shares held on an entitlement date to be determined later. The proposed rights issue is to part finance the proposed acquisition and/or for working capital requirements and bank