KUALA LUMPUR, July 19 — Kenanga Research says there is no reason for gaming company Berjaya Sports Toto to acquire a non-gaming asset H.R. Owen Plc.
HRO is listed on the London Stock Exchange and operates more than 40 franchised automotive dealerships in the United Kingdom.
Yesterday, Berjaya Jaya Sports Toto announced that its subsidiary company, Berjaya Philippines Inc, listed on the Philippine Stock Exchange, has made a cash offer to acquire the entire issued and to be issued share capital of H.R. Owen not already held by Berjaya Philippines for about RM113.7 million.
Hong Leong Investment Bank Research said it was puzzled by Berjaya Philippines’ intention, given that Berjaya Philippines specialises in lottery businesses.
Berjaya Philippines at present has a 29.81 per cent stake in H.R. Owen.
Kenanga maintains its “underperform” on Berjaya Sports Toto, with a target price of RM4.02 per share, while Hong Leong Research maintained a “hold”, with the price target of RM4.64.
As at mid-day, Berjaya Sports Toto lost one sen to RM4.22, with 194,500 shares traded. — Bernama
