Johor Sultan acquire 20% stake in Berjaya Times Square

DBKL: Rate Revision on Hold

Sultan of Johor Sultan Ibrahim Ismail has inked an agreement to acquire 150 million shares or a 20 percent interest in Berjaya Times Square Sdn Bhd (BTSSB), a fully owned unit Berjaya Assets Bhd (BAssets), for RM250 million cash. Notably, BTSSB is the owner, among others, of Berjaya Times Square Mall in Jalan Imbi, Kuala Lumpur.

Dubbed as the country's largest shopping mall, the Berjaya Times Square Mall comprises a 12-level shopping mall, a 46-storey tower of service suites and hotel, five levels of basement as well as 10 floors of annexed car parks.

To be paid within 14 days from date of agreement, BAssets revealed in a Bursa filing that the acquisition price was arrived “at on a willing buyer willing seller basis after taking into consideration, among others, the discount of the market price to the net assets of BAssets shares and the net assets value of BTSSB Group.”

With the sale, BAssets will realise an exceptional gain of RM7.02 million at company level and and exceptional loss of RM149.15 million at group level, and eventually reduce retained earnings by the same amount.

Meanwhile, BAssets' stake in BTSSB will be reduced to 80 percent after the completion of the disposal.

BAssets noted that the sale allowed the group to raise immediate cash, while the Sultan's entry will enable him to more actively participate in the developments of the BTSSB Group.

BAssets plans to use the sales proceeds for working capital and/or future investments.