There was large amount of ICULs, total of 40,533,000 shares converted into mother shares today.
If this conversion were to continue further, it is a strong signal for mother shares to move up soon.

Further study on BLand (Group Level) total borrowings:

Total borrowings:
1. FY-2019, 30-06-2019; total borrowings, RM2,980 million
2. FY-2020, 30-09-2019; total borrowings, RM2,990 million (Up only RM10 million from FY-2019)
3. FY-2020, 31-12-2019; total borrowings, RM2,130 million (Up RM150 million from FY-2019)
4. FY-2020, 31-03-2020; total borrowings, RM3,336 million (Up RM356 million from FY-2019)

Total long-term borrowings:
1. FY-2019, 30-06-2019; total L-T borrowings, RM1,648 million
2. FY-2020, 30-09-2019; total L-T borrowings, RM1,703 million (Up RM55 million from FY-2019)
3. FY-2020, 31-12-2019; total L-T borrowings, RM1,868 million (Up RM220 million from FY-2019)
4. FY-2020, 31-03-2020; total L-T borrowings, RM2,063 million (Up RM415 million from FY-2019)

From above, BLand long term borrowings are increasing very aggressively.
Plus the above cash inflow of RM2,310 million.

What will be next ???

Re-cap the corporate proposals (B7) and litigation (B9) of BjLand:

A. STC case, it has new hearing date of the Main Appeal on 2-9 July 2020, it made STC case will go on for some-times. BLand has pre-payment of RM230 million for STC development. (Pg 166, 12. Receivables, clause c. )

B. GMOC case closed, there is inflow of RM600 mil ++ (Group level)

C. BVFC and BVIUT case. The disposal nego started 4 June 2018. Value RM155 mil + others.
Once the deal closed, there is inflow of RM155 mil ++

B9. JDC Lawsuit, Jeju, case closed, there is inflow of RM600 mil ++ (Group level)


On top of the above, the additional could be:

1. Disposal of Sheraton Hotel at Hanoi, It could bring in inflow of RM500 mil ++.

2. Disposal of Four-Seasons Hotel at Kyoto. BjLand only can declare RM225 million share of profit, as it is an associated company of BLand.
Please noted that neither asset nor liability of Four-Seasons Hotel Kyoto is registered in BLand Balance Sheet.
It was miss-interpretation to register it's Book value at BLand level.

Summary of BLand (Group Level) cash inflow:
1. STC pre-payment, RM230 million
1. GMOC, arbitration, RM600 million
2. Jeju JDC law-suit, RM600 million
3. BVFC and BVIUT, RM155 million
4. Sheraton Hotel, Hanoi, RM500 million
5. Four-Season Hotel Kyoto, RM225 million.

Total cash inflow, RM2,310 million.

STC Law-suit,

The hearing of the FC Leave Motion and the application for stay as well as the Main Appeal were
postponed, due to the Movement Control Order ("MCO") which came into effect on 18 March 2020.

The Federal Court has now fixed the hearing of the FC Leave Motion on 6 July 2020.

The Court of Appeal has now fixed the hearing date for the stay application on 2 July 2020.

A case management date for the Main Appeal has been fixed for 9 July 2020 by the Court of Appeal.

The STC Proposals proceedings are still ongoing.

Refer to BLand latest closures again.

1. For GMOC, total proceeds shall be of RM600 million (inclusive of interests);
Less it's liability of RM108 million; gross inflow to BLand (with partners) is RM492 million;
Less 49% minority interest; nett inflow to BLand is RM251 million.

2. For Jeju case, total proceeds is not disclosed, let assume is at RM600 million (around there);
Less it's liability of RM112 million; gross inflow to BLand (with partners) is RM488 million;
Less minority interest; nett inflow to BLand is RM362 million.

3. Therefore, in BLand book receivable, it shall be RM1,200 million;
Par down of liability is RM220 million;
Less minority interest, of RM367 million;
Nett inflow to BLand is RM613 million.

With above re-phasing, it shall be better clarity for all.

Opps!!!

There was no impairment losses allocated for Jeju Law-suit. From FY-2014 to FY-2019.
Refer to 31/32 Investment Related Expenses.

However, the accumulated impairment losses for GMOC is of RM 304.647 million.

Wish that somebody to clarify better for Jeju-Law-suit "impairment losses" .

Which means no extra gain can be called back from Jeju-Law-suit.

The only benefits from the closure of :

1. GMOC, RM492 million = RM600 million - RM108 million (Due to Main Con);
BLand portion is RM251 million (51%).

2. Jeju-Law-suit, RM362 million, nett from all expenses and RM112 million (Due to Main Con)

3. Total RM613 million receivables; and deduction debts of RM220 million.

My apologise again.

To rephase, again:

Pursuant to the Settlement Agreement, all parties agree to resolve all disputes arising from the Jeju Project via payment by JDC of:

(a) Korean Won (“KRW”) 125.00 billion (equivalent to about RM443.88 million*) to BLCL and SSP as compensation for damages incurred as joint venture partners of JDC in BJR (“JVA Damages”);
and
(b) a compensation sum to BJR due to damages incurred by BJR with regard to the Land SPA and the Jeju Project, where BJR shall utilise such sum to repay its relevant liabilities, payables and expenses which includes the debt owing to POSCO Engineering & Construction Co., Ltd. (“POSCO”, the main contractor for the Jeju Project) and part of the inter-company loan amount owing by BJR to BLCL (“Land SPA Damages”).

The estimated total settlement sum to be received by BLCL from the JVA Damages and Land SPA Damages, net of relevant taxes and expenses, is estimated to be about KRW102.00 billion (approximately RM362.19 million*).

1. JVA Damages: Compensation to BLCL and SSP, RM443.88 million;
2. Land SPA Damages: Compensation to BJR (BLCL, SSP & BJR), amount not mentioned; where BJR shall utilise such sum to repay its relevant liabilities, payables and expenses which includes the debt owing to “POSCO”, the main contractor for the Jeju Project. (Refer to BLand, FY-2019 Annual Report, amount to RM111 milion).

The total nett settlement sum to be received by BLCL, is of RM362.19 million.

The total receivable shall be about RM595 million (as refer to BLand, FY-2019 Annual Report).

The nett impact on BLand profits, shall refer to "reversal of accumulated impairment losses".

My apologise.

To rephase:

Pursuant to the Settlement Agreement, all parties agree to resolve all disputes arising from the Jeju Project via payment by JDC of:

(a) Korean Won (“KRW”) 125.00 billion (equivalent to about RM443.88 million*) to BLCL and SSP as compensation for damages incurred as joint venture partners of JDC in BJR (“JVA Damages”);
and
(b) a compensation sum to BJR due to damages incurred by BJR with regard to the Land SPA and the Jeju Project, where BJR shall utilise such sum to repay its relevant liabilities, payables and expenses which includes the debt owing to POSCO Engineering & Construction Co., Ltd. (“POSCO”, the main contractor for the Jeju Project) and part of the inter-company loan amount owing by BJR to BLCL (“Land SPA Damages”). The estimated total settlement sum to be received by BLCL from the JVA Damages and Land SPA Damages, net of relevant taxes and expenses, is estimated to be about KRW102.00 billion (approximately RM362.19 million*).

1. BLCL and SSP received RM443.88 million; BLand own 89.6%, shall get RM388.885 million
2. BJR received RM362.19 million; which BLand own 72.60%, shall get RM262.95 million

BLand shall receive RM651.835 million.

Pursuant to the Settlement Agreement, all parties agree to resolve all disputes arising from the Jeju Project via payment by JDC of:
(a) Korean Won (“KRW”) 125.00 billion (equivalent to about RM443.88 million*) to BLCL and SSP as compensation for damages incurred as joint venture partners of JDC in BJR (“JVA Damages”); and
(b) a compensation sum to BJR due to damages incurred by BJR with regard to the Land SPA and the Jeju Project, where BJR shall utilise such sum to repay its relevant liabilities, payables and expenses which includes the debt owing to POSCO Engineering & Construction Co., Ltd. (“POSCO”, the main contractor for the Jeju Project) and part of the inter-company loan amount owing by BJR to BLCL (“Land SPA Damages”). The estimated total settlement sum to be received by BLCL from the JVA Damages and Land SPA Damages, net of relevant taxes and expenses, is estimated to be about KRW102.00 billion (approximately RM362.19 million*).

Total = RM443.88 million + RM362.19 million = RM806.07 million

BLand hold 72.60%.

Not RM600 million. Only RM306 million.

AS there is partner holding the balance of 49%.

From above, the proceeds from Sky-Ocean should be secured.
Only take time for the high court order.

由于被法院保全的舍得集团等几家公司股权价值达200多亿元，超过争议金额。天洋集团正申请复议释放出超额保全的资产，以及打算通过担保等方式解除对舍得集团70%股权的保全。

End of year 2019, Sky-Ocean's holding on 舍得集团 70% have been withheld/ Ca-vet by BLand.

位于燕郊102国道与潮白河交汇处东南角，紧邻通燕高速首站的橘黄色烂尾楼，一度成为燕郊房地产市场特殊的存在。
这座被当地居民称为“不成功”的成功大广场，系马来西亚博彩巨头成功集团投资开发，占地31万平方米，总建筑面积173万平方米，包括一座室内主题公园，总投资超过50亿元，号称“世界最大商业项目”。
成功大广场在2005年开工，但没有如期在2008年竣工，而是成为了燕郊最大的商业烂尾楼。2015年底，当时刚成为舍得酒业（600702.SH）控股股东的天洋控股集团（简称天洋集团）以20.8亿元接盘该项目。2017年为配合当地交通改造工程，成功大广场被拆除废弃，原地取而代之的将是天洋创新中心项目。
有意思的是，这座已经快被人遗忘的废弃建筑，最终与舍得酒业扯上了关系—— 2019年11月18日，舍得酒业放量大跌9.05%，原因是当天有消息指出“舍得酒业的实控人天洋集团持有的沱牌舍得集团股权遭司法冻结。”
舍得酒业当天晚间发布澄清公告称，这是由于控股股东天洋集团因商业合同纠纷而在香港被成功集团发起仲裁，进而导致天洋集团所持舍得集团70%股权等资产被采取保全措施。

RM20 million profit per year with 1,175 million BjCorp shares swap.

It is Expensive deal for BCorp shareholders.

Berjaya Corp’s takeover of Singer deemed expensive

Kamarul Azhar
/
The Edge Malaysia

June 16, 2020 18:00 pm +08

BERJAYA Corp Bhd’s (BCorp) proposal to take over Singer (Malaysia) Sdn Bhd from Berjaya Retail Bhd (BRetail) and its largest shareholder, tycoon Tan Sri Vincent Tan Chee Yioun, at 19 times price-to-earnings ratio (PER) is deemed expensive.
The announcement elicited a mostly muted reaction from investors to shares in BCorp the following day (June 3). Its share price hardly moved that day, settling unchanged at 19 sen.
Investors whom The Edge spoke to expressed scepticism about the deal, especially the RM536 million purchase consideration being offered. At 19 times PER, they say, BCorp could have acquired stakes in other retail companies that give out better returns.
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An investor who declined to be named believes Singer will not be a good investment, as it is no longer a strong brand like before.
A check with the Companies Commission of Malaysia shows that Singer’s net profit grew 66.6% year on year (y-o-y) to RM31.6 million in the financial year ended Dec 31, 2018 (FY2018).
Investors are questioning the strong profit growth, however, pointing to Singer’s revenue, which grew only 3.5% y-o-y to RM321.96 million during the year.
“Revenue did not double during the year, so there must be something else that contributed to the almost doubling of the profits. I think margins in this kind of business are not very high,” another investor tells The Edge.
Over the last five years, Singer’s net profit dropped from RM34.63 million in FY2014 to RM18.95 million in FY2017. FY2014 recorded the highest revenue during that time, at RM492.5 million.
On June 2, BCorp said it had entered into a memorandum of understanding (MoU) with BRetail and Tan for the acquisition of Singer for a net payment of RM388 million, after set-off of the intercompany debts of Singer of RM148 million against the purchase consideration of RM536 million.

The acquisition will involve the issuance of new BCorp shares at 33 sen each, representing a premium of 14 sen, or about 74% to the stock’s closing price of 19 sen on May 29.
Under the proposal, BCorp will issue 1.18 billion new shares for the net payment of RM388 million. In addition, Tan will provide BCorp with a profit guarantee that Singer will achieve a net profit of RM20 million a year for the financial years ending Dec 31, 2020 and 2021.
Based on net payment of RM388 million for the 100% stake in Singer, this profit guarantee of RM20 million a year will translate into a net PER of 19.4 times, the announcement says.
As at press time, BCorp had not responded to queries by The Edge.
Investors’ scepticism of Singer’s profit margins is not unfounded. A comparison of Singer with Bursa Malaysia-listed manufacturers and distributors of electrical appliances such as Khind Holdings Bhd and Pensonic Holdings Bhd shows a wide net profit margin gap.
In FY2019, Khind reported a net profit of RM1.81 million on revenue of RM363.2 million. This translates into a net profit margin of only 0.5%. Meanwhile, Pensonic reported RM3.65 million in net profit on revenue of RM217.7 million for the nine-month period ended Feb 29, 2020, giving it a net profit margin of 1.7%.
In comparison, Singer reported a net profit margin of 9.8% in FY2018.
Khind traded at a trailing 12-month (TTM) PER of 4.73 times as at last Thursday. At RM1.74 a share, the company has a market value of RM70 million. The counter is thinly traded, with the highest volume year to date (YTD) being 51,200 units on June 1.
Pensonic traded at a TTM PER of 7.17 times as at last Thursday. At 27.5 sen a share, the Penang-based manufacturer has a market value of RM36 million. The counter has been on an upward trajectory since hitting the YTD low of 19 sen on March 23.
Given the vast differences in PER between Khind and Pensonic on the one hand and Singer on the other, investors are sceptical about who will benefit from the deal. The market’s muted response to BCorp’s share price indicates that it is doubtful that the group will benefit.
BCorp’s profitability in the 14-month period ended June 30, 2019 was affected by a RM417.3 million impairment charge on the value of its gaming rights.

Excluding the impairment charges, BCorp recorded a net profit of RM125.72 million on revenue of RM9.78 billion.
The profit guarantee of RM20 million a year for two financial years does not seem to be exciting enough for investors to pick up BCorp’s shares. Based on a net profit of RM126.72 million and the 5.22 billion shares issued, BCorp’s earnings per share (EPS) was 2.4 sen.
With an additional RM20 million coming from Singer, and assuming that the group’s net profit stays flat in the 12-month period to June 30, 2020 (FY2020), along with the additional 1.18 billion new shares, BCorp’s EPS would be slightly diluted to 2.3 sen.
BCorp’s outlook for FY2020 so far is bleak. In the six-month period ended Dec 31, 2019 (1HFY2020), BCorp reco

One interesting finding at BCorp Q3 report, B8, group borrowings.

From Kyoto prospectus, it did stated that after receive proceeds from Kyoto disposal.
BCorp will repay back RM1.5 billion to par down their group borrowings from RM6 bil to RM 4.5 bil.

However, the bottom line is RM 4.9 bil, RM 400 million higher.
Means in this Qtr, the group was draw down further.
However if we refer to BLand Q3 report, it's group borrowings has up from RM3 bil to RM3.3 bil.

This shows that the additional draw down was by BLand group, and report under BCorp too.

Kahhoeng,

You are right, under BCorp Q3 report;

1, It shows RM 2 billion proceed from Kyoto (Form Investing Cash flow)
2. It shows RM 1.5 billion repayment to Bank (From Financing Cash flow; Q3-Q2)
From B8,
3. It shows RM 800 million & RM 90 million (long & short term) loan repayment on Japanese Yen.
4. It shows RM500 million Malaysia loan repayment.

We could say, The RM 900 million loan repayment under Japanese Yen, named under BCorp,
not under BLand, as Kyoto Hotel is only associated Company.

The balance RM 600 million, BLand portion is RM 300 million, and others under BCorp.

What Kahhoeng said is right.

Stockraider, there's no further information of singer available, but a 20 million profit guarantee for a 1.1 billion new shares is surely absurd when a singer is sold at or close to net asset at a heavily discounted bjcorp net asset. If bjcorp net asset not performing, I would rather bjcorp improve efficiency and clean up balance sheet before buying anything, especially when the impact of covid-19 has yet to be known.

Why so hurry???

To those saying buying Singer RM388 million with share swap of 1,175 million BCorp shares is good offer.
Allow us to suggest another mode, pay Singer with cash term.

However please note that the buying price was at PE ratio 19.8, which was very much at high side.
It is not an good offer to BCorp.

SSLee,
You may add one more point.
7. As VT has conflict of interest on both BjCorp and BjRetail. He shall abstain from corporate decision for the above deal. Even by regulation the deal may not require approval from shareholders, BjCorp shall call for EGM to seek minority shareholders acceptance while he and his related parties shall abstain from the voting right..

The best is to refer to Minority Shareholders Watch (MSWG)

With both proceeds from Kyoto hotel sales and GMOC compensation.
Total 915 + 595 = 1,510 million.
It has strengthen Bland Financial position within 3 months.

Assume repayment of bank loan is 1,200 million.
The present BLand bank loan (exclude Bj Toto portion) will drop from 1,800 mill to 600 million.

Once the compensation received, it will be counted as ROE under equity section;
and at the same time also classified as cash on hand under Asset section.
Under finances statement, Assets = Equity + Liabilities.

Agree with Kahhoeng.
Not only buy at good price, further solve the cash position issue.
Use share swap will not spend much cash reserve.
For BLand share holders, they could still hold on to the ship to wait for good gain later,
instead of sell at 38 sen, or even lower.

Kahhoeng,
While VT keep grapping BLand last year until beyond 85%, then sold of some to reduce ownership to below 85%.
Believe that VT think SC still could let him get waiver for beyond the boarder.

From BjCorp balance sheet last year, their cash position is not strong enough to privatise BLand.
Event today, with the cash proceed into BjCorp of RM935 mil, after pay off debts of RM800 mil,
They still does not have good cash position to privatise BLand.

Maybe 38/30 sen conversion is good move, however 15% BLand is 750 mil shares, it will need about 1 Billion BjCorp shares for share swap.

However, the share-holders mandate is only 530 mil BjCorp shares, still not enough.

Therefore, VT need another plan.
Properly, with share buy-back of 530 mil shares, plus mandate 530 mil.
The privatization of BLand could happen.

Thks to Wantami,

1. Seoul Central District Court postponed the due adjudication to see both of the parties can make a deal out as much as 350 billion KRW(appx. 310m US$). It was supposed to make the final conclusion on February 6th.

The above deal give returns of US 310 mil, which is RM 1,240 Billion.
Beyond the earlier target of RM 600 mil to RM 1.0 Billion.
Sound good.

Appreciated Kahhoeng sharing on the Reply from BJLand investor relation:

Please compare,
Berjaya: Pursuant to Listing Requirements of Bursa Malaysia Securities Berhad, BLand is not required to make any announcement and BLand shareholders’ approval is not required for the proposed disposal of the Hotel. Nevertheless, BLand has voluntarily announced a summary of the proposed disposal to Bursa Securities for information purposes.

Mine:
The company announcement is by Law.
As Kyoto Hotel is an Associated to BjLand, by Law they does not need to declare any news.
However, we shall appreciate they have done their announcement on 28-02-2020.
At the same day, they did make announcement to claim that they could share profit of RM210 mil.

Kahhoeng,

Like to quote one example related to Associated announcement.
Does anyone notice that BjLand have taken up right issue of Informatic Ltd, and finally it become subsidiary company of BjLand ?

That event happened in Q1, however beside statement on Q1 report.
There was no announcement on it.
It simply the same practice by BjLand.
However, nobody has questioned it as it is not an major event I believed.

Thanks to Kahhoeng,
He has give further explanation on BjLand net debts, once exclude debt carried by BjToto.

My comment on the said BjCorp and BjLand analysises are, they did not factor in the recently completed deal on the Kyoto Hotel disposal which bring in RM1.87 Billion cash, and RM1.6 Billion to be used to pay back the debts, on BjCorp level, and take half on BjLand level.

Both BjCorp and BjLand will have much better debt positions after the above settlement.

Further to the above, once the Jeju and GMOC deals are completed, their debt positions could be even better.

Kahhoeng,
The company announcement is by Law.
As Kyoto Hotel is an Associated to BjLand, by Law they does not need to declare any news.
However, we shall appreciate they have done their announcement on 28-02-2020.
At the same day, they did make announcement to claim that they could share profit of RM210 mil.

Further details, anybody could refer to BjCorp announcement.

As retail investor, we got to sit tight and understand each move of the major share-holder.
Regret to say, VT will not act according to minority request.
He will only plan forward his final goal to merge BjLand into BjCorp.

What minority shall focus is on the closing deals of Jeju and GMOC.
These two deals will bring in full proceeds to BjLand, not to BjCorp.

Pay attention to Jeju case, as BjLand have done full impairment on the investment.
Any agreed amount shall deem as 100% profit, if RM600 mil is RM600 mil profit,
If RM1 Billion settlement it will be RM1 Billion profit.

It will be much important deal as compare to Kyoto Hotel.

We refer to below:

We refer to the announcement dated 28 February 2020 in relation to the Proposals.

On behalf of the Board, Maybank IB wishes to announce that the Disposal was completed today following the settlement of the Total Consideration by the Purchaser in cash and BKD has on even date entered into the Lease Agreement with the Trustee and the Purchaser.

This Announcement is dated 10 March 2020.

Therefore, it si sure that full payment received, as at above.

@Eddysurge,
I missed that article, can you share with us here?

Kahhoeng,

As Kyoto Hotel is an Associated Company of BjLand, by law no specific announcement required to be made by them for any event like selling of the Kyoto Hotel.
In fact BjLand has do one step ahead to also give their announcement during the selling.

Any release of the final result will be stated in the quarterly report at the end of May-2020.

However, as BjLand has actually hold 50% of the Kyoto Hotel, which is the real fact.
The 50% effective returns have already been back to BjLand.

Very unfortunate, as the market retailers not very clear on it's returns (as Kahhoeng asking).
The retailers have let go their precious at the very last minutes (at this moment).

Hope that all retailers could sit tight and hold on, as the cash proceed is even higher than the market capital of BjLand present value.

Eddysurge,
BjCorp reported Kyoto Sales of RM1.87 Billion, (it is as group level).
The Kyoto Hotel is 50:50 split between BjCorp and BjLand.
Therefore, both BjCorp and BjLand shall share the cash payment of RM935 million each.
At the end of the deal, which have been done, each party have RM210 million nett gain.

This is the beauty of Listing announcement.

As BjLand hold 50% of Kyoto Hotel, but they only classify this Kyoto Hotel as Associated Co.
The reason is back to year 2015, BjLand have run out of cash/capital to continue on the
construction of the Kyoto Hotel. They seek for help from BjCorp, to take-over 50% shares of Kyoto Hotel and finish up the Hotel in year 2017.

Therefore, all the glory named under BjCorp, however the actual fruit will be shared among them.

Sad to say,
Even-though BjLand have the same cash back of RM935 million.

However, as VT and group have held 85% shares.
Any share buy-back will trigger the public split limit.
Therefore, we do not see any movement from BjLand.

Follow the above,
Is the above share buy-back "End-game" for BjCorp?

The answer is NOT.

BjCorp could have two options:

1) To distribute back those shares to the remaining share-holders;
Means distribute 1.1 share for every 1 share held at May-2020.
This will take some times, for notice to public and distribution exercise.

2) To cancel those share bought back.

Once either option was done, BjCorp could re-start the share buy-back again.

With option 2, the NA will up-lift from 1,23 to 1,33, then to 1,43, 1,53 ...

Of course, each round of share buy-back, will cost them RM120 million,
Believe two rounds of share buy-back is within the acceptable strategy.

Dear all,
With cahs payment of RM1.87 Billion to BjCorp group (of course 935 million flow to BjLand).
This is the best time ever for BJCorp to carry out share buy-back option.
They have mandate to buy back upto 10% of the total shares, which is 530 million shares.
They have collected 87.1 million, refer the above.
Take an average of 10 million shares buy back from market everyday.
They only need less than 45 days to complete this task.
This mean by next quarter report, scheduled to be announced by 30-05-2020,
They could be finish buying the 530 million, and make balance of BjCorp shares of 4,870 million.
The result of the share buy back will improve the NA of BjCorp from 1.23 to 1.33.
Up 10 sen, as the share buy back will cost them 20~23 sen per share.

Follow the above,
Is the above share buy-back "End-game" for BjCorp?

The answer is NOT.

BjCorp could have two options:

1) To distribute back those shares to the remaining share-holders;
Means distribute 1.1 share for every 1 share held at May-2020.
This will take some times, for notice to public and distribution exercise.

2) To cancel those share bought back.

Once either option was done, BjCorp could re-start the share buy-back again.

With option 2, the NA will up-lift from 1,23 to 1,33, then to 1,43, 1,53 ...

Of course, each round of share buy-back, will cost them RM120 million,
Believe two rounds of share buy-back is within the acceptable strategy.

Dear all,
With cahs payment of RM1.87 Billion to BjCorp group (of course 935 million flow to BjLand).
This is the best time ever for BJCorp to carry out share buy-back option.
They have mandate to buy back upto 10% of the total shares, which is 530 million shares.
They have collected 87.1 million, refer the above.
Take an average of 10 million shares buy back from market everyday.
They only need less than 45 days to complete this task.
This mean by next quarter report, scheduled to be announced by 30-05-2020,
They could be finish buying the 530 million, and make balance of BjCorp shares of 4,870 million.
The result of the share buy back will improve the NA of BjCorp from 1.23 to 1.33.
Up 10 sen, as the share buy back will cost them 20~23 sen per share.

Dear all,

Let us analyse the corporate proposals (B7) and litigation (B9) of BjLand:

A. STC case, it has new hearing date of the Main Appeal on 27 March 2020, it made STC case will go on for some-times.

B. GMOC case, The arbitral tribunal is currently in deliberations and a decision is expected during the second quarter of 2020. Means result shall be out before June-2020.
Once the case close, there is inflow of RM600 mil ++

C. BVFC and BVIUT case. The disposal nego started 4 June 2018. Value RM155 mil + others.
Once the deal closed, there is inflow of RM155 mil ++

B9. JDC Lawsuit, Jeju.
The court has fixed 9 January 2020 for delivery of the judgment.
On 9 January 2020, the delivery of the court's judgement was postponed to 6 February 2020.
On 6 February 2020, the court further postponed the delivery of its judgement to an unspecified date.
This means both parties still unable to come to an agreement.
Once the deal closed, there is inlfow of RM600 mil to RM1,000 mil. (As VT seek for )

On top of the above, the additional could be:

1. Disposal of Seraton Hotel at Hanoi, It could bring in inflow of RM500 mil ++.

2. Disposal of Four-Seasons Hotel at Kyoto. It could bring in inflow of RM1,600 mil (To BjLand).

21/02/2020 9:57 AM

My correction:
The Four-Seasons Hotel Kyoto, only bring inflow of RM910 million (to BjLand).

For the other proposals, we shall monitor their progress from time to time.

The good news is, all of the proposals are directly benefits BjLand. unlike the Kyoto Hotel.
BjLand only could declare RM201 million sharing of profit with BjCorp,

Yesterday,
Market have responded positively to BjCorp to closed at 23.0 sen.
And BjLand closed event at 16.5 sen.

Notified from some of the securities were spreading the very good results from BjCorp (only).
They were miss-understood that the good news only related to BjCorp, as announcement was from BjCorp and EMG only called at BjCrop level.

Even-thought BjLand have give one notice to claim their share of profit of RM201 million (nett).
The market does not spread or even aware that BjLand having the equal benefits with BjCorp.

Therefore, we need more forums and platforms to share the good news with others.

Correction:
BjLand regards Berjaya Kyoto Development (S) Pte Ltd ("BKDS"), as its associated company.
Then BKDS own 100% of KHHA, Japan.

The history should back to year 2015, BjLand was not able completed Four Seasons Hotel Kyoto by their own financial strength. Therefore, there was an rescue plan from BjCorp to take 50% ownership of KHHA from BjLand.

The interesting part of the deal is, with the same share holding, who shall have the ultimate decision on KHHA.
The answer is as above, and KHHA become associated company of BjLand.

Dear Kahhoeng,
The answer for the question (2) and first part of (3),
BjLand owned 50% KHHA (the owner of Four Seasons Hotel Kyoto), as an associated company. As BjCorp have ultimate say on KHHA board of director, even thought BjCoep have equal share.

Therefore, BjLand could only enjoy the same benefit of profit (RM201 million) and proceeds (RM901 million), but no say at EGM and public announcement.

Dear all,
The Kyoto Hotel with 123 rooms were sold.
The Hotel Resident, total 57 units; balance 34 units unsold.
I wonder once all residents were sold.
The ownership of the 800-year-old garden and pond surrounded by the Hotel rooms and Residents were still under Berjaya ?

Sound yes, as the Details of the Hotel under Clause 2.1 of the Proposal did not include the pond.

Kahhoeng,
The greatest return from the above disposal is about the RM900 million proceeds to each of
BjLand and BjCorp; RM800 million will be used for bank repayment for each group.

BjLand total debt (as at 30-06-19) is of RM2,980 million
Less BjToto debt (as at 30-06-19) is of (RM1,120 million)
Debt under BjLand (as at 30-06-19) is RM1,860 million.
Debt repayment of BjLand is (RM 800 million)

The balance of debt under BjLand is RM1,060 million.
It shall be under manageable debt scheme.

There are still 34 units residents un-sold.
Believe that at present COVID-19 issue, the sales will not happen soon.

“I am happy to dispose this hotel which is only about 3½ years old for a huge gain. Together with the 23 units of the Four Seasons Kyoto residences which were already sold and the estimated profit from the potential sale of the remaining 34 units of the residences, the BCorp Group is expecting to realise a total net gain of about RM1.55bil with gross cash inflows surpassing RM3.22bil for our entire Four Seasons Hotel and Residences project in Kyoto” said BCorp executive chairman Tan Sri Vincent Tan.

Kahhoeng,
How come BJLand makes 200 millions while BJCorp makes 600 millions?!?
BjLand share 50%, they take the profit after tax and expense, about RM201.9 million.
BjCorp will have the same profit after tax too.