Malaysia's Berjaya weighs potential acquisition in financial services

Malaysia's Berjaya weighs potential acquisition in financial services

Photo by Cytonn Photography on Unsplash

Malaysian consumer-to-property conglomerate Berjaya Corp is evaluating a “major potential acquisition” involving a licensed entity governed by the Malaysian central bank, it said in a stock filing late Tuesday.

To facilitate the potential purchase of a 51% equity stake, Berjaya Corp said its founder and major shareholder Vincent Tan Chee Yioun intends to pare down his stake to not more than 19.6% by the end of January 2023.

Tan currently owns an 18.84% stake in Berjaya Corp, according to Refinitiv data.

Under Malaysia’s financial services act, no individual should hold more than 10% of a licensed entity governed by the country’s central bank.

Berjaya Corp said it expects the contribution from this potential acquisition to “contribute significantly” to its earnings and net assets.

Shares of Berjaya Corp have climbed 18% year-to-date, giving the conglomerate a market value of $397.8 million, Refinitiv data show.

It currently has business in the financial services sector via units including stockbroking firm Inter-Pacific Securities Sdn Bhd and general insurer Berjaya Sompo Insurance Bhd, according to its website.

Reuters

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