BCorp cancels plan to take over Singer Malaysia


  • Corporate News
  • Friday, 14 Aug 2020

BCorp said it has entered into a termination agreement with Berjaya Retail Sdn Bhd (BRetail) and Tan Sri Vincent Tan (pic) to mutually terminate a memorandum of understanding (MoU).

PETALING JAYA: Berjaya Corp Bhd (BCorp) has cancelled its plan to take over home electronic appliances distributor Singer (M) Sdn Bhd, a deal that could have cost more than half a billion ringgit.

The plan to buy Singer Group was announced less than two months ago.

In a filing with Bursa Malaysia, BCorp said the change of mind was due to coronavirus (Covid-19) uncertainty and a challenging business environment.

BCorp said it has entered into a termination agreement with Berjaya Retail Sdn Bhd (BRetail) and Tan Sri Vincent Tan to mutually terminate a memorandum of understanding (MoU).

The MoU was in relation to the proposed acquisition by BCorp of 100% equity interest in Singer Malaysia from BRetail for a total purchase consideration of RM536mil.

“The termination will not have any material effect on the issued share capital, substantial shareholders’ shareholdings, earnings, net assets and gearing of the group, ” BCorp said.

On June 2, BCorp announced its plan to buy a 100% stake in the Singer group for a net payment of RM388mil million after a set-off of the inter-company debts of the Singer group of RM148mil against the purchase consideration of RM536mil.

As at Dec 31,2019 (FY19), the unaudited net assets of the Singer group was RM561mil.

For the acquisition, BCorp was planning to issue 1.18 million new shares at 33 sen apiece.

Under the deal, Tan was supposed to have provided BCorp a guarantee that the Singer group will achieve a profit after tax of RM20mil per year for FY20 and FY21.

The Singer group is principally involved in marketing, retailing and direct selling of consumer durable products and motorcycles on cash, credit, hire-purchase schemes, equal payment schemes and credit sales schemes.

Singer group, which was then known as Berjaya Singer Bhd, was once housed under a former listed entity, Berjaya Retail Bhd, which also owned 7-Eleven Bhd then. It was listed in 2010. It has a retail network of about 450 stores nationwide and 3,000 independent sales agents.

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Vincent Tan , Singer , Berjaya corp , Singer Malaysia ,

   

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