Berjaya unit in PH acquires stake in Malaysian IT firm
MANILA, Philippines—Berjaya Philippines Inc., the domestic unit of Malaysia’s Berjaya Group, has acquired a minority stake in a Malaysian information technology company.
A filing in the Philippine Stock Exchange on Thursday showed that Berjaya Philippines purchased shares, convertible debt and warrants of Redtone International Bhd., which is listed in Kuala Lumpur, for about P273 million.
Based on the filing, Berjaya Philippines acquired 11.4 million shares of Redtone International valued at 0.10 Ringgit per share or a total of P62.5 million. These account for 2.39 percent of the company’s outstanding stock.
Berjaya Philippines also acquired 81.25 million units of Redtone’s convertible debt valued at about P211.18 million, accounting for 33.46 percent of total convertible debt. Some 563,700 warrants were also bought for P2.04 million.
Redtone International is engaged in the provision of data and broadband solutions to corporate, small and medium enterprises, and government units. It is also into the management and building of Wi-Fi networks, the statement showed.
Redtone International also operates in Shanghai, China, under Redtone Asia Inc., which is listed on the US OTC Bulletin Board.
“The securities were acquired for trading purposes as part of the issuer’s strategy for maximizing the utility of its unappropriated funds,” Berjaya Philippines said in the disclosure.
“The securities were purchased at prices based on the prevailing market prices at the time of acquisitions,” it added.
Berjaya Philippines noted that the purchase would have no effect on its issued and paid-up share capital.
Berjaya Philippines earns mainly from Philippine Gaming Management Corp., which supplies lotto equipment to the Philippine Charity Sweepstakes Office. It is also involved in hotels, fast food and automobile distribution.
Berjaya Philippines’ share price declined by 4.65 percent to P20.50 per share at the close of trading on Thursday.