Tan: We’re in the business for profits, not for glory.
HE has stated it as soon as, he has stated it many occasions – the market doesn’t know methods to worth his corporations. Berjaya Corp Bhd (BCorp) founder and govt chairman Tan Sri Vincent Tan can solely speculate on the explanation why most fund managers discover it obscure the enterprise of his diversified conglomerate.
For BCorp particularly, the 66-year-old tycoon quips that the enterprise mannequin resembles “rojak”, implying that it’s too diversified.
“It’s a conglomerate, so it owns many issues. So, some might not perceive (BCorp’s enterprise mannequin),” Tan says.
Whereas there’s a tendency of markets to worth a diversified group of companies and property at lower than the sum of its half, the so-called “conglomerate low cost” utilized to BCorp has been unjustifiably extreme, in Tan’s view.
Nonetheless, one analyst challenges that notion by declaring that BCorp’s monetary efficiency has neither been spectacular nor constant in recent times.
“There are explanation why the counter lacks enchantment. It’s not a yield play to start with, and its monetary efficiency has not been very spectacular or constant in recent times,” the analyst with a overseas brokerage explains.
Be that as it might, Tan, who returned to the helm of the Berjaya group in November final yr after a five-year hiatus, is endeavor a strategic evaluate of his companies within the hope of bettering their efficiency.
In accordance with sources, Tan has been assembly up with bankers way back to a yr in the past, in search of to promote BCorp’s property as a part of a plan to restructure his enterprise empire.
“BCorp is asset-heavy, however mild on money move. In a liquidity crunch, the group will certainly be hit. So, higher promote now for the potential storm forward,” the supply tells StarBizWeek.
“And Tan desires to promote ‘all the pieces’ – however at a really excessive premium. Therefore, there have been some challenges confronted in his try and get rid of a few of his prized property,” he provides.
However, the supply factors out that Tan’s monitor document exhibits that the tycoon has the flexibility to hold on to his property till he will get the “proper worth”, citing the case of Digi.Com Bhd.
In 1999, Tan offered his stake in Digi, which was then often called Digi.Swisscom Bhd, and walked away from the funding with a bounty estimated at greater than RM1.5bil.
As at end-July, BCorp’s whole property stood at RM20.5bil, with money and money equivalents totalling RM1.3bil. The group was final traded at 28 sen per share, which is a reduction of just about 80% to its web property of RM1.36 per share.