Berjaya Corp Raises RM18.76 Million via Disposal of Subsidiary Shares to Vincent Tan

PETALING JAYA (May 7): Berjaya Corp Bhd has disposed of shares in two of its listed subsidiaries — Berjaya Property Bhd and Sports Toto Bhd — to its founder and major shareholder Vincent Tan Chee Yioun through direct business transactions, raising a total of RM18.76 million for working capital purposes.

According to Bursa Malaysia filings, the disposals were carried out on May 5 through two wholly-owned subsidiaries under the Berjaya Corp group.

Berjaya IPS Credits Sdn Bhd disposed of 50 million Berjaya Property shares, equivalent to approximately 1.02% equity interest, at RM0.27 per share for RM13.50 million.

Separately, Berjaya IPS Equity Sdn Bhd sold 3.958 million Sports Toto shares, representing around 0.30% equity interest, at RM1.33 per share for RM5.26 million.

Both disposals were undertaken based on prevailing market prices at the time of the transactions.

Shares Sold Below Carrying Value

A key takeaway from the transactions is that both share disposals were executed significantly below their carrying values in Berjaya Corp’s books.

The Berjaya Property shares had been carried at approximately RM0.91 per share since April 2024. The disposal price of RM0.27 per share therefore reflected a discount of about 70% to book value.

Meanwhile, the Sports Toto shares were carried at approximately RM2.95 per share since September 2025. The sale price of RM1.33 per share represented a discount of roughly 55%.

Despite the sizeable discounts, Berjaya Corp stated that the transactions are not expected to materially impact the group’s net assets, earnings, or gearing for the financial year ending June 30, 2026.

Berjaya Corp Retains Controlling Stakes

Following the latest disposals and an earlier disposal of 19 million Berjaya Property shares to an unrelated third party in March 2026, Berjaya Corp still maintains controlling stakes in both companies.

The group currently holds approximately 3.70 billion Berjaya Property shares, equivalent to a 75.75% stake, as well as about 693.65 million Sports Toto shares, representing a 52.64% equity interest.

This means both companies remain majority-owned subsidiaries of Berjaya Corp despite the share sales.

Related Party Transaction Governance

As the buyer, Vincent Tan, is a major shareholder of Berjaya Corp, Berjaya Property, and Sports Toto, the transactions are classified as related party transactions under Bursa Malaysia listing requirements.

Berjaya Corp chief executive officer and executive director Nerine Tan Sheik Ping and executive director Chryseis Tan Sheik Ling — both daughters of Vincent Tan — abstained from all board discussions and voting related to the disposals.

The group’s audit committee concluded that the transactions were fair, conducted on normal commercial terms, and not detrimental to minority shareholders.

The disposals also did not require shareholder approval as the highest applicable percentage ratio stood at only 0.66%, below Bursa Malaysia’s approval threshold.

What We Learn From This

The exercise highlights several important corporate and investment lessons:

• Companies may dispose of assets below carrying value if market prices are significantly weaker than book values.
• Related party transactions are allowed under Bursa Malaysia rules, provided governance procedures, disclosures, and abstentions are properly followed.
• Even after partial disposals, holding above 50% equity enables a parent company to retain control over subsidiaries.
• Working capital requirements can drive strategic share disposals, especially during periods when companies seek to improve liquidity without major restructuring.
• Book value does not always reflect current market value, particularly for listed shares affected by market sentiment and trading conditions.