Friday, July 8, 2011

BCorp plans to take Hong Kong unit private

Berjaya Corp Bhd (BCorp) says its wholly-owned subsidiary Cosway Corp Bhd is considering the privatisation and delisting of Hong Kong-listed Cosway Corp Ltd (CCL) for HK$1.10 (42.5 sen) per share.


The company told Bursa Malaysia that the privatisation would provide CCL with the necessary management flexibility and enable CCL to focus on driving its strategic plan to globalise the Cosway brand.

“The board of BCorp is confident of the excellent future potential of the Cosway business model and hence is proposing to own 100% of the company.

“The board is of the view that CCL could potentially become the main core business of the BCorp group and underpin the group’s performance, going forward,” BCorp said.

The price of HK$1.10 represents a premium of about 45.1% over the five-day volume weighted average market price of HK$0.7583 per CCL share up to July 6.
CCL was floated on the Hong Kong Stock Exchange in November 2009 via a reverse takeover of Berjaya Holdings (HK) Ltd. 
(The Star)

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