BToto to spin off Sports Toto in RM6b deal

Berjaya Sports Toto Bhd (BST) today announced plan to spin off its
subsidiary, Sports Toto Malaysia (STM), into a business trust to be
constituted in Singapore.

The group also intends to list the
STM-Trust on the Singapore Bourse, SGX-ST, via an offer for sale and a
new issue of units in conjunction with its initial public offer (IPO).

In
a statement today, BToto said it would divest STM to the STM-Trust for
RM6 billion, to be satisfied by the issuance of 4.43 billion trust units
issued at about S$0.50 (RM1.24) each and some RM527.4 million (S$213.4
million) will be settled via the issuance by STM-Trust of a promissory
note or bill of exchange in favour of BToto.

STM-Trust will also
issue up to 460.0 million new units in conjunction with the IPO and the
pricing would be determined via book-building process.

"The
monies raised will be utilised to settle the aforesaid RM527.4 million
note, to defray expenses of the issue and for working capital," it said.

BToto
said it would also make an offer for sale of up to 540.0 million trust
units at a price to be determined via the same book building process
(OFS).

In all, a total of 1.0 billion STM-Trust units will be
made available to institutional, corporate and retail investors in
conjunction with the IPO exercise which will represent about 20.46 per
cent of the total enlarged outstanding units of 4.89 billion.

On
rationale, BToto expected the spin off to unlock further shareholder
value in STM, by accessing a potentially larger pool of investors of
non-Syariah compliant stocks.

The STM-Trust will be mandated to
only invest in gaming type businesses and investments. It would be
managed by a Trustee-Manager which will be incorporated in Singapore as a
wholly-owned subsidiary of BToto under the proposed name, Sports Toto
Malaysia Management Pte Ltd.

Maybank Investment Bank, Malaysia
and Maybank Kim Eng Corporate Finance, Singapore have been retained as
Adviser to BToto and Issue Manager and Adviser for the IPO,
respectively.

Commenting on the scheme, BToto Chief Executive
Officer Datuk Robin Tan Yeong Ching said shareholders could also expect
to receive special cash dividends from net proceeds to be raised from
the OFS.

The scheme would require approvals from both the
Malaysian and Singapore regulators, as well as the greenlight from
BToto's shareholders for the divestment of STM to the STM-Trust, which
is expected to debut on the SGX by year-end.

The group yesterday
announced to Bursa Malaysia its suspension from trading with effect from
9 am, today. The counter was last traded at RM4.25. -- Bernama