The move is in line with Tan’s vision to transform the group into an institutionalised corporation managed by professionals
by ALIFAH ZAINUDDIN / pic by TMR
BERJAYA Corp Bhd’s (BCorp) Tan Sri Vincent Tan (picture) left his executive role in the company as the family-owned business continues to rejig its corporate structure.
The move is in line with Tan’s vision to transform the Berjaya Group into an institutionalised firm managed by professionals. Tan, however, will remain as non-executive chairman at BCorp.
Tan remains one of the country’s iconic businessmen with extensive business interest in Malaysia and abroad in countries like the Philippines and the UK, including being the owner of Cardiff City football club.
Former Permodalan Nasional Bhd CEO Abdul Jalil Abdul Rasheed was appointed as BCorp group CEO on March 16 and has been mandated to transform the group into a high-performing organisation.
“It is important to give Abdul Jalil space and freedom to run Berjaya in his own style. I can now take a step back from active day-to-day involvement in the group’s businesses and devote more of my time and energy to promoting charitable initiatives and other interests,” Tan said in a statement yesterday. “Now, it’s time to give back.”
Data compiled by Bloomberg shows Tan added about RM880 million to his equity fortune through his stakes in Berjaya Group following Abdul Jalil’s appointment as BCorp CEO on March 16.
Tan currently holds a 25.12% direct interest in BCorp and has direct shares in 7-Eleven Malaysia Holdings Bhd (28.24%), Berjaya Assets Bhd (32.84%), Berjaya Land Bhd (BLand) (1.94%), Berjaya Food Bhd (4.89%) and Berjaya Sports Toto Bhd (0.77%).
Tan also holds indirect interests in the listed firms via companies like Bizurai Bijak (M) Sdn Bhd, Berjaya Retail Sdn Bhd, Juara Sejati Sdn Bhd, Hotel Resort Enterprise Sdn Bhd and U Telemedia Sdn Bhd.
All six companies have seen their share price increased by at least 10% following Abdul Jalil’s appointment, with BCorp registering the most gains.
BCorp shares hit a high of 50 sen per share last week, its highest in six years, from 19 sen at the start of the year. The company added some RM1.55 billion to its valuation at the price peak from RM950 million over the period.
The counter continues to be one of the most actively traded stocks, with more than 188 million shares changing hands yesterday, over 100 times the stock’s 30-day average trading volume of 1.67 million shares.
7-Eleven shares ended trading yesterday at a new 52-week high of RM1.49, up 12% year-to-date (YTD) from RM1.33, propping up its market valuation to RM1.71 billion.
Tan’s equity value in the convenience store operator is estimated to have risen by at least RM86 million since Abdul Jalil took the helm at BCorp. Tan has been buying new shares in 7-Eleven, adding more than 3.3 million shares so far this month, the company’s latest filing showed.
Berjaya Assets’ share price has climbed to a 52-week high of 48 sen from 30 sen on Jan 4, a 60% increase YTD, while shares of Berjaya Food have risen 25% YTD to RM2 from RM1.60 over the same period.
Shares of BLand continued to move upwards yesterday, settling 4.4% higher at 48 sen after hitting a high of 52 sen and low of 45 sen in intraday trade. The company’s shares have surged by 152% from 19 sen at the beginning of the year.
Berjaya Sports Toto’s shares ended at RM2.13 yesterday, unchanged from Jan 4.
Abdul Jalil has also acquired a total of 136 million shares in BCorp, equivalent to a 2.72% direct stake in the company, in a move he described as “having skin” in the game that would ensure he remained focused on driving shareholder value.
Read our previous report here