BCorp confirms it is in talks with potential seller of licensed entity

TheEdge Mon, Jan 09, 2023 10:35pm - 1 year View Original

KUALA LUMPUR (Jan 9): Berjaya Corp Bhd (BCorp) confirmed on Monday (Jan 9) that it is in talks on acquiring a company, after The Edge reported that BCorp could be eyeing a controlling stake in life insurance company MCIS Life Bhd.

The group informed Bursa Malaysia Securities in a filing that it is “in the midst of negotiation with a potential seller of a licensed entity, subject to approval of Bank Negara Malaysia (BNM)”.

This, it added, is in line with its recent announcement that “BCorp is contemplating a major potential acquisition involving a licensed entity which is governed by BNM under the Financial Services Act 2013 (FSA)”.

BCorp, which was referring to an article in the latest issue of The Edge Malaysia weekly entitled “Berjaya Corp eyes controlling stake in MCIS Life”, did not name the potential seller nor the company to be potentially acquired, in its filing.

“BCorp will make the necessary announcement in compliance with BNM and Bursa Securities’ rulings upon the signing of the definitive agreement with the seller of the licensed entity,” it said.

Citing sources, The Edge Malaysia, in its Jan 9 issue, reported that BCorp has been in negotiations with South Africa-based Sanlam Ltd since last year to buy the Sanlam’s entire 51% stake in MCIS Life.

Koperasi MCIS Bhd holds another 44.39% equity interest in MCIS Life, while the remaining shares are held by individuals, according to firm’s filings with CTOS.

Last month, BCorp announced that its founder and major shareholder Tan Sri Vincent Tan Chee Yioun intends to pare his shareholding in the group to not more than 19.6% by end-January 2023.

This, the group said, was to facilitate the potential acquisition of a financial institution. According to Section 92 of the FSA, individuals shall hold no more than a 10% stake in a financial institution.

On Jan 6, Tan sold 40 million shares or a 0.7% stake in BCorp to his son-in-law SM Faliq SM Nasimuddin for RM10 million or 25 sen per share. Subsequent to the divestment, Tan is left with a 25.33% stake in BCorp.

SM Faliq, who is deputy group executive chairman of Naza Group, is married to Vincent Tan’s daughter Chryseis Tan Sheik Ling.

Filings on the same day showed that Chryseis Tan, who is also BCorp’s non-executive director, acquired the shares in two tranches (34.52 million shares and 5.48 million shares) through her spouse.

Shares in BCorp ended 2.5 sen or 8.2% higher at 33 sen on Monday, giving the group a market capitalisation of RM1.94 billion.

Read also:
Vincent Tan divests 0.7% stake in BCorp to son-in-law for RM10m

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