Friday, July 8, 2011

BCorp aborts special dividend as it privatises Cosway HK

KUALA LUMPUR: BERJAYA CORPORATION BHD [] has aborted the proposals including a special dividend after it decided to go ahead and privatise its Hong Kong-listed Cosway Corp Ltd (CCL), after listing it about two years ago.

The corporate exercise then had included the issuance restricted non-renounceable offer for sale by CCL of HK$491.56 million loan stocks to BCorp shareholders.

'On behalf of the board of BCorp, we wish to inform that as a consequence of the proposed privatisation, the company has aborted the proposals,' BCorp said on Friday, July 8.

On Thursday, BCorp, which owns 55.47% or 2.615 billion shares in CCL out of the 4.715 billion shares, said the exercise would be at a cash consideration of HK$1.10 or 42 sen per ordinary share of HK$0.20 each in CCL shares and HK$1.10 per HK$0.20 nominal amount of irredeemable convertible unsecured loan securities (CCL ICULS).

BCorp also owns 6.837 billion CCL ICULS, which are convertible into 6.837 billion new CCL Shares.

At HK$1.10 per share, BCorp is valuing the company at HK$5.19 billion. The remaining 44.53% or 2.1 billion shares it does not own is valued at HK$2.31 billion.

BCorp chairman Tan Sri Vincent Tan and executive director Rayvin Tan also own 330,000 and 221,707 shares respectively.

BCorp said in its statement it would be in the best interests of the company to privatise CCL in the light of the current development of its group of companies.


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