Restructure.
In business, perhaps that's a word describing the actions taken to rectify and to correct past faulty and poorly excuted business decisions.
Now Berjaya Corporation's restructuring scheme took more than 3 years to complete.
Massive.
Really massive.
And with the massive scheme comes a massive corporate exercise. And in that exercise, Irredeemable Convertible Loan Stocks were created as part of a means to help Berjaya Corporation out of the mess it created.
Now these ICULS came into play last Tuesday.
As they say, the rest was history.
Both the stock and the Irredeemable Convertible Loan Stocks (ICULS) fell by more than 81 per cent and 89 per cent respectively on heavy trade.
This morning, the Business Times carried an article on it.
Tan reaffirms commitment to BCorp
Now, me is just wondering... what's your reaction to all this?
Thursday, January 05, 2006
Berjaya Corporation
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7 comments:
ZeMoola,
Vincent Tan is a bloodthirsty butcher
at the Bursa.
SC and Bursa allowing this to go on.
This is not a market - its a Bursa Slaughterhouse.
Getting away with murder.
Have u invested in the slaughterhouse
lately?
Haemorraghing
Bursa Slaughterhouse???
:)
dis fellow vely good wan.... same league wif david copperfield when it comes to books....
Anon,
LOL!!!
U mean dis fella can make da books disappear like David???
ps..
so dis statement below:
Berjaya Corp's owner Tan Sri Vincent Tan says he bought another 60 million loan stocks to show his confidence in the group
how u see?
:D
from business-times
-------
Published January 5, 2006
Vincent Tan incurs RM800m paper loss
Overhang contributed to Berjaya Corp's price dive
By PAULINE NG
IN KUALA LUMPUR
MALAYSIAN tycoon Vincent Tan is sitting on a paper loss of nearly RM800 million (S$352 million), arising mainly from the massive overhang of loan stocks issued by his conglomerate Berjaya Corporation.
But yesterday, he played down the sell-down in the loan stocks on concerns that the restructured company would not perform. He even said that as others were selling, he was buying - having purchased an additional 60 million of BCorp loan stock on the open market on Tuesday.
As part of the corporate restructuring of the conglomerate, Mr Tan invested RM203.5 million cash for BCorp's rights issue to subscribe for 407 million BCorp irredeemable convertible unsecured loan stocks (Iculs).
He had also injected his 85 per cent-controlled company Bukit Tinggi Resort into BCorp for 684.7 million BCorp shares.
Following the restructuring, Mr Tan owns 68 per cent of BCorp's 1.23 billion shares.
BCorp and its subsidiaries own 47 per cent of the 9.8 billion Iculs that were issued by BCorp in the restructuring exercise, while Mr Tan also holds a direct 8 per cent of the Iculs.
In a statement yesterday, the company said the public portion of 2.97 billion BCorp Iculs mainly arose from the capital repayment, special dividend-in-specie exercises by its units Berjaya Land and Berjaya Capital.
'It is to be expected that a great number of these 54,000 Iculs holders will take the opportunity to realise their BCorp Iculs (which they received free of charge) upon listing, and this has thus created an 'overhang' situation which contributed to the sharp decline in the market prices of the BCorp securities upon its maiden listing on Bursa Malaysia Securities Berhad on Jan 3,' the statement said.
Upon its listing, BCorp opened at 20 sen, 80 sen lower than its reference price.
Its 50 sen nominal amount Iculs were massively traded and ended the day at six sen. There was little change to the share price of the securities yesterday.
The company said that, based on yesterday's closing prices of BCorp shares and Iculs of 18.5 sen per and six sen respectively, Mr Tan would have a total book loss of close to RM800 million.
Mr Tan himself said: 'I am confident that given the stronger footing and the future growth prospects of the BCorp Group, my investment will do well in the future. I'm not overly concerned about the current prices of the shares and Iculs. As a matter of fact, I have purchased additional 60 million BCorp Iculs from the open market yesterday to reiterate my confidence and firm commitment in the company and the group.'
Many years ago one of the publisher had report a bad thing about him, but
VT had succeeded in suing the publisher into bankruptcy if not mistaken one of the largest libel suit
compensation been awarded in Malaysia. So until now not even a single publishing co. dare to say anything bad about him.
Oh!
:D
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