Bjtoto ... July 09

BLand has raised RM190 million after placing out 40 million shares in Berjaya Sports Toto Bhd (BToto). The shares, representing a 3.18% stake in BToto, were placed out at RM4.75 per share.

The placement price was a discount of 30 sen or 5.94% over the weighted average market price of BToto shares for the past three days ended July 6 2009 of RM5.05 per BToto share.

The placement price was at a price-earnings multiple of 14.53 times based on the unaudited earnings per share of the BToto group of 32.68 sen for FY ended April 30, 2009.

The corporate exercise reduced the BLand group’s total stake in BToto by 3.18% to 47.48%. The Berjaya Corporation Bhd Group together with the B-Land Group now own about 48.17% of BToto.

The entire 40 million BToto shares pursuant to the placement were acquired by BLand since 1992 with a total carrying value of about RM37 million in the books of BLand.
The net cash proceeds from the placement would be used by BLand to partially redeem its RM848.10 million 8% secured exchangeable bonds due in 2011. Under the trust deed dated Aug 8, 2006 on the bonds issuance, BLand would, at the option of any bond holder, redeem such bonds on Aug 15, 2009 at a price equal to 100% of its nominal amount. The balance of the proceeds, if any, will be utilised for working capital purposes of the BLand group.

Tan Sri Vincent Tan Chee Yioun, a major shareholder of BLand, has a direct 70.10 million BToto shares or 5.58% in BToto before the placement. He is also deemed interested in 15.10 million BToto Shares or about 1.20% in BToto held by certain subsidiaries of Berjaya Corporation Bhd and other private companies.

Tan had also concurrently with the placement, placed out a total of 15.60 million BToto Shares to placees procured by placement agent.