Saturday, 11 June 2016

BLand selling BToto shares at a loss after 24 years ......?

Berjaya Land made the following announcement:

In other words, BLand held some of these shares over 24 years, and sold them at a loss?

Although BLand must have received a lot of dividend from its BToto shares over the years, still, it sounds quite disappointing.

I thought the rule is "Buy low, Sell high", but BLand seems to disagree with that.

Also, why did BLand sell the shares now, at current depressed prices, when BToto was trading at a much higher price for many years?


  1. Berjaya Group of companies have common majority shareholders (Vincent Tan et al). So cross holdings of shares in companies within the same stable are common. Now BLand may find it expedient to liquidate some BToto shares that they don't see upsides in the foreseeable future. My commonsense read of the action.

  2. I wonder who the shares were disposed to at c. 11% below the market price at the time. The discount seems a bit excessive relative to BToto's ADT (c. RM2.6mn/day)

  3. Yeah, strange deal, for years they could have sold in the market for RM 4.

  4. Yes, and BLand's gearing has actually been improving slightly in recent quarters - so doesn't need to be an apparent need for cash