Is Berjaya paying too much for Ascot stake?

PETALING JAYA: Is Berjaya Corp Bhd getting value for its money for the 70% stake it has proposed to acquire in Ascot Sports Sdn Bhd?

The price tag of RM525mil for the stake works out to RM9.37 per share based on Ascot Sports’ paid-up share capital of RM80mil comprising RM1 shares. The acquisition price is valued at six times price-to-earnings (P/E) ratio.