Business & Markets 2013
Written by Isabelle Francis of theedgemalaysia.com
Friday, 20 September 2013 09:55
KUALA LUMPUR: BERJAYA SPORTS TOTO BHD  (BToto) has proposed to undertake a proposed dividend-in-specie of up to 2.81 billion units to its shareholders in conjunction with the secondary listing of Sports Toto Malaysia Trust (STM-Trust) on the Main Market of Bursa Malaysia. STM-Trust’s primary listing is on the main board of Singapore Exchange Trading Ltd (SGX-ST).
The dividend-in-specie is on the basis of 21 STM-Trust units for every 10 BToto shares, the company said in a filing with Bursa Malaysia yesterday. The 2.81 billion units represent up to 58.18% of the total number of STM-Trust units in issue.
BToto said following the completion of the proposed primary listing in Singapore, STM-Trust intends to seek the listing of and quotation for up to 4.83 billion STM-Trust units on Bursa’s Main Market.
“With the proposed secondary listing, all the STM-Trust units which will be listed and traded on the main board of SGX-ST, will also be listed and traded on Bursa’s Main Market and will be fully fungible between the two exchanges,” it said.
BToto said shareholders will be able to transfer their STM-Trust units from Bursa Malaysia Depository Sdn Bhd to Central Depository (Pte) Ltd of Singapore, in accordance with the prevailing mechanism for transfers, which will be set out in STM-Trust’s prospectus for the proposed secondary listing.
Pursuant to the proposed transfer, STM-Trust will issue the STM-Trust units directly to Berjaya Sports Toto (Cayman) Ltd, a wholly-owned subsidiary of Magna Mahsuri Sdn Bhd, which in turn is a wholly-owned subsidiary of BToto.
BToto said to facilitate the proposed dividend-in-specie, BToto Cayman will transfer up to 2.81 billion STM-Trust units to BToto for a transfer consideration of up to S$1.41 billion or S$0.5001 per STM Trust Unit (equivalent of up to RM3.49 billion or RM1.24 per STM-Trust unit).
BToto said the proposal will enable shareholders to have direct interest in STM via their unitholdings in STM-Trust, thus benefiting from the performance of STM, currently the main income contributor to BToto.
It said the move will provide investors a choice of trading the STM-Trust units via Bursa and/or SGX-ST.
The proposed dividend-in-specie will increase the STM-Trust unitholder base and enhance the liquidity and tradeability of STM-Trust units, it added.
This article first appeared in The Edge Financial Daily, on September 20, 2013.