The acquisition will involve the issuance of new BCorp shares at an issue price of RM0.33 each, representing a premium of RM0.14 or about 74% over last Friday’s closing price of RM0.19 per BCorp share. BCorp will issue about 1,175.76 million BCorp shares for the net payment of RM388 million. In addition, TSVT will provide to BCorp a profit guarantee that Singer will achieve a profit after tax of RM20 million per year for the financial years ending 31 December 2020 and 31 December 2021. Based on net payment of RM388 million for the 100% stake in Singer, this profit guarantee of RM20 million per year will translate to a net price-earnings multiple of 19.4 times.
Stock: [BJCORP]: BERJAYA CORPORATION BHD
2020-06-02 20:06 | Report Abuse
The acquisition will involve the issuance of new BCorp shares at an issue price of RM0.33
each, representing a premium of RM0.14 or about 74% over last Friday’s closing price of
RM0.19 per BCorp share. BCorp will issue about 1,175.76 million BCorp shares for the
net payment of RM388 million. In addition, TSVT will provide to BCorp a profit guarantee
that Singer will achieve a profit after tax of RM20 million per year for the financial years ending
31 December 2020 and 31 December 2021. Based on net payment of RM388 million for the
100% stake in Singer, this profit guarantee of RM20 million per year will translate to a net
price-earnings multiple of 19.4 times.