BAssets units sell 2.45% stake in 7-Eleven for RM41.6m

This article first appeared in The Edge Financial Daily, on March 29, 2019.
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KUALA LUMPUR: Berjaya Assets Bhd (BAssets) has disposed of 27.7 million shares or a 2.45% stake in 7-Eleven Malaysia Holdings Bhd, via a director business transaction, for RM41.55 million or RM1.50 per share.

In a filing with Bursa Malaysia yesterday, BAssets said the disposals were done by its units, Berjaya Bright Sdn Bhd and Berjaya Times Square Sdn Bhd, on March 8 and 26.

BAssets is left with 39.9 million shares or a 3.53% stake in 7-Eleven after the disposals, it said.

The group said the disposal price was at a 4.17% premium above 7-Eleven’s five-day volume weighted average market price (up to March 22) of RM1.44 per share.

As at Feb 28, the carrying amount of 7-Eleven shares in BAssets’ books was RM1.47 per share.

BAssets also said the cash proceeds from the disposals will be used for repayment of borrowings and working capital.

“There is no material effect on the gain/loss arising from the disposals,” it said.

BAssets did not provide details of the buyers of the shares.

The group’s share price rose half a sen or 1.61% to close at 31.5 sen yesterday, giving it a market capitalisation of RM805.86 million.

7-Eleven, meanwhile, was unchanged at RM1.48, valuing it at RM1.67 billion.