KUALA LUMPUR (Dec 19): Tan Sri Vincent Tan is contemplating a disposal of his shareholding in 7-Eleven Holdings Bhd to his flagship Berjaya Corp Bhd (BCorp), as he believes the former to be undervalued. 

Speaking to reporters at a business update session today, Tan maintained that the share price of convenience store operator 7-Eleven is "being undervalued" on Bursa Malaysia.

"We are considering maybe sell all my 46% shareholdings in 7-Eleven to BCorp, then let BCorp launch a General Offer (GO), but nothing is firmed yet. 7-Eleven is being undervalued, to me it should worth more than US$1 billion," he stated.

7-Eleven closed three sen or 2.31% lower to RM1.27 today, valuing the group at RM1.43 billion or about US$342 million. 

As at Dec 17, Tan owned 48.33% of Berjaya Corp which has a market capitalisation of some RM1.35 billion, based on its current share price of RM0.275. 

With 2,250 franchises across the country, 7-Eleven is aiming to open at least another 200 stores in 2019, compared to 126 stores this year, Tan said.

He also revealed that an initial public offering for U Mobile Sdn Bhd remains intact, and is targetted to take place by 2020 at the latest.

"U Mobile is ready for listing, it is Ebitda (earnings before interest, tax, depreciation and amortisation) positive now, and heading on the right track. We are looking to list it maybe in 2019, or latest in 2020," he said.

Its largest shareholder, Temasek-owned Singapore Technologies Telemedia, has a 49% stake in U Mobile.

Tan is the second largest shareholder holding a direct 6.2% interest, as well as indirect stakes through U Telemedia Sdn Bhd 21.44%, and Berjaya Infrastructure Sdn Bhd 2.01%. 

Other shareholders include Sultan Ibrahim of Johor (14.98%) and billionaire Surin Upatkoon via Magnum Bhd (6.33%). 

Tan also said he remains interested in forming a joint venture with the Johor State government to build a new international airport on Tioman Island.

"I think it will be a viable business, and Tioman Island needs such an airport. We are proposing to the Federal government now, hoping that they support the idea. We want to build it on reclaimed land because the current airport land is not able to expand further into an international airport, where larger aircraft could have direct flights to the island.”