Berjaya Corp disposes of entire 8.43% stake in Magni-Tech

Berjaya Corp disposes of entire 8.43% stake in Magni-Tech
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KUALA LUMPUR (June 8): Berjaya Corporation Bhd (BCorp)’s wholly-owned subsidiary, Juara Sejati Sdn Bhd, had disposed of its entire 8.43% stake, comprising 13,716,900 ordinary shares of RM1.00 each in Magni-Tech Industries Bhd (Magni-Tech) for a cash consideration of about RM56.71 million or at an average price of RM4.13 per share.

The disposal was done via direct business transactions during the period from Jan 13, 2016 to June, 7 2016. The average price of RM4.13 was at a discount of 24 sen from Magni-Tech’s closing price of RM4.37.

According to an announcement on Bursa, the cash proceeds arising from the shares disposal will be utilized as working capital of the BCorp group. Based on the BCorp Group carrying value of RM56.00 million, the shares disposal resulted in a net gain of RM1.19 million, since the said carrying value has incorporated a re-measurement gain of RM29.23 million. The said gains were all recognized in the previous financial year ended April 30, 2016.

As of closing today, BCorp edged up by 1.37% to 37 sen, with 10.46 million shares traded; while Magni-Tech’s share price fell by 0.68% to RM4.37, with only 69,600 shares exchanging hands.