Berjaya Sports Toto (BST)

Berjaya Sports Toto (BST): The Msia group plans to list its lottery unit Sports Toto Malaysia Sdn Bhd in Singapore by mid Nov ’12 and raise > US$388m from an initial share sale. BST’s plan calls for a transfer of its entire stake in Sports Toto Malaysia to a business trust known as Sports Toto Malaysia Trust for RM 6.0b. The IPO will involve the sale of up to 540m existing shares and another 460m of new shares in the trust. Based on an assumed offer price of $0.50/sh, the IPO could raise as much as $500m before listing up to 4.89b shares on SGX. Sports Toto Malaysia is licensed for the so-called number forecast operations in Msia with RM 345.3m net profit on the back of RM 3.28b in revenue as of FY11. It offers 7 games that are drawn 3 days a week and operates 680 outlets in Msia. The trust will be mandated to invest in gaming-type businesses or investments and aims to distribute all of its surplus operating cashflow annually. The proposals are expected to unlock further value in Sports Toto Malaysia and allow its unit to "gain access to a potentially larger pool of investors for non-shariah compliant stocks". Maybank IB Bhd has been appointed as the principal adviser. Tan Sri Vincent Tan is the effective majority sh/h of BST. His high profile partnerships with Spore’s Peter Lim may lead to interest in counters owned directly by Peter Lim, amongst them Informatics, Rowsley, UPP, FJ Benjamin, ABR Holdings. Interestingly, UPP also counts Msian tycoon Tong Kooi Ong as a significant sh/h. Back in Mar ’12, Tong and Vincent Tan are were reported to be reviving their plans to list their respective Msian media groups.