Local Berjaya unit buying into Malaysian IT firm for P300M

MANILA, Philippines - The local unit of Malaysian conglomerate Berjaya Corp. is spending around P300 million to buy into a Malaysian IT firm.

In a disclosure, Berjaya Philippines Inc. said it acquired shares in Redtone International Berhad, which is listed at the Kuala Lumpur stock exchange.

Specifically, Berjaya Philippines bought 11.4 million shares or 2.38 percent of Redtone worth P62.5 million, 81.25 million units of convertible debts valued at P211.18 million and 563,700 warrants worth P2 million.

“The securities were acquired for trading purposes as part of the issuer’s strategy for maximizing the utility of its unappropriated funds,” Berjaya Philippines said.

Redtone is engaged in the provision of data and broadband solutions to corporate, small and medium enterprises, and government segments. It is also into the management and set-up of wireless networks.

In February, Berjaya Philippines spent more than $7.48 million to buy two percent of Atlan Holdings Berhad, a property firm and duty-free retailer in Malaysia.

The listed company is also holding Atlan’s shares as a near-term investment.

Berjaya Philippines supplies equipment for lottery operations in Luzon and owns the Berjaya Hotel in Makati. It also holds the local franchise for pizza restaurant Papa John’s and is the sole distributor of Mazda vehicles, parts, and accessories in the Philippines.                                                                                 

Berjaya Philippines is looking to build more hotels in the country, including the luxury Four Seasons Hotel, and produce consumer goods in anticipation of higher consumption and tourism growth.