BCorp's offer for REDTone becomes unconditional

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KUALA LUMPUR (May 8): Berjaya Corp Bhd (BCorp) has received valid acceptance for its takeover offer to REDTone International Bhd, with a controlling stake of 52.17% as at 5pm today.

In the filing with Bursa Malaysia, BCorp (fundamental: 0.9; valuation: 2) said the conglomerate together with the parties acting in concert (PACs) hold 383.7 million shares, representing a 52.17% equity interest in REDtone (fundamental: 2.3; valuation: 0.5).

Meanwhile, BCorp and its PACs hold 40.9 million of REDtone’s irredeemable convertible unsecured loan stock (ICULS), representing 64.02% holding of REDtone’s total ICULS.

“As such, the acceptance condition of the offer has been fulfilled and the offer has become unconditional on May 8, 2015,” said BCorp in the announcement to the stock exchange.

BCorp said the offer would be kept for a further 14 days from the unconditional date, in line with its extended closing date of May 22.

The conglomerate intends to have REDTone listed on Bursa, upon completion of the takeover offer.

“In view of the offeror and its PACs holding in aggregate more than 50% of the voting shares of REDtone, REDtone is now deemed a subsidiary of Berjaya Corporation Bhd,” it said.

To recap, BCorp had on March 27, offered to acquire REDtone’s shares which it did not already own at 80 sen per share and 32 sen per ICULS, via its wholly-owned subsidiary Juara Sejati Sdn Bhd.

The takeover offer is conditional upon Juara Sejati and the parties acting in concert (PACs) holding more than 50% of the voting shares by the closing date.

The PACs are BCorp as the ultimate offeror, Berjaya Philippines Inc, Prime Credit Leasing Sdn Bhd, Berjaya Group Bhd, tycoon Tan Sri Vincent Tan Chee Yioun and Sia Git Kim.

BCorp closed 0.5 sen or 1.19% higher at 42.5 sen, bringing its market capitalisation to RM1.74 billion. REDtone share price was unchanged at 80.5 sen today, with a market capitalisation of RM592.08 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)