Berjaya Corporation has confirmed that it is in negotiation with MCIS Insurance in acquiring a controlling stake in the insurance company.
Earlier the group had informed Bursa in a filing that the group was in a discussion of acquiring a financial linked company that would require Bank Negara approval.
Without mentioning the firm or entity, BCorp said the company is regulated under the Financial Services Act, furthermore, the Act which states that “no individual shall hold more than ten percent of the interest in shares of a licensed person.” has prompted its major shareholder to pare down his interest in the group. In order to acquire the 51% equity stake in the licensed entity Tan Sri Dato’ Seri Vincent Tan Chee Yioun, the major shareholder and Non-Executive Chairman has undertaken to pare down his shareholding in order to comply with Section 92 of the FSA.
In view of this, Vincent Tan is carrying out several share disposals to reduce his stake to not more than 19.6% by January 2023 which will result in his effective interest in shares of the licensed entity being not more than 10% if the potential acquisition materialises.
BCorp said it is looking to expand and grow its financial services segment and expects the contribution from this potential acquisition to contribute significantly to the earnings and net assets of BCorporation Group. It said announcements will be made as required in compliance with BNM and Bursa rulings in due course.
