14  theSun | WEDNESDAY OCTOBER 14 2009

business

Cosway set to transform BHK

into significant regional player
by Maria J. Dass
newsdesk@thesundaily.com
PETALING JAYA: Berjaya Holdings (HK) Ltd
(BHK) and Berjaya Corporation Bhd (B-Corp),
the parent company of both Cosway Malaysia
and BHK, yesterday announced what is essen-
tially an internal re-organisation for B-Corp
but with significant positive benefits for BHK,
its listed subsidiary on the Hongkong Stock
Exchange (HKSE).
A joint press release issued by B-Corp and
BHK stated that under the BHK re-organisation
plan, B-Corp will inject its entire 90% stake in
Cosway Malaysia for RM900 million (valuing
the entire company at RM1 billion) which will
be settled by a combination of new issue of
BHK shares of HK$0.20 (RM0.087) par, new
Irredeemable Convertible Unsecured Loan
Stocks (ICULS), and a small portion in cash
(RM44.7 million).
The ICULS shall have a tenure of 10 years
from its date of issue and carries a coupon
of 1% for the first two years and 3.5% for the
remaining eight years. The ICULS can be
converted into new BHK shares on any work
day during its tenure at par by surrendering
HK$0.20 ICULS for one new BHK share. The
ICULS will be separately listed and quoted on
the HKSE.
The BHK re-organisation plan involves
the acquisition of the balance 10% in Cosway
Malaysia for RM100 million to be settled by
an issue of a combination of new BHK shares
and ICULS; the acquisition of the remaining
40% in eCosway (already a 60% subsidiary of
Cosway Malaysia) for RM107.58 million to be
settled by an issue of a combination of new
BHK shares and ICULS; the capitalisation of
HK$36 million (RM15.7 million) in advances
that Berjaya Group (Cayman) Ltd has ad-
vanced to BHK; the increase in its authorised
capital; the adoption of an employees share
option scheme (ESOS); and the proposed
change of its name to Cosway Corporation
Ltd to better reflect its new group principal
activity.
Upon successful completion of the BHK
re-organisation plan, B-Corp (through its
subsidiary companies) will have an initial
combined 73.38% in BHK and upon full con-
version of the ICULS, its equity stake in BHK
will increase to 81.05%.
In view of the need to maintain a 25%
shareholding spread on the HKSE, B-Corp
and its relevant subsidiary companies as
well as certain connected individuals will be
prohibited from converting any of the ICULS
should such act result in the shareholding
spread being reduced to below 25%.
Cosway Malaysia is one of the pioneers in
the direct selling industry in Malaysia and has
since 1979 established a significant presence
in Malaysia. It has since grown into a regional
player notably in Taiwan, Hongkong, South
Korea, Indonesia, Thailand, Australia, Brunei,
Putting Cosway
Malaysia’s unique
direct selling business
into BHK, which is listed in
Hongkong, an international
financial centre, will afford a
more transparent indication
of the value of the Cosway
business for the benefit of
B-Corp, its stakeholders and
shareholders.”
– Chan Kien Sing
Macau and Singapore.
The group adopts a unique business model
by establishing a vast and efficient distribu-
tion network comprising a membership of
870,000 independent business owners who
are supported by more than 1,500 store and
stockist centres.
Its range of over 1,400 personal care, health
and nutrition, skincare, cosmetics, household,
car, food and beverage, kitchenware and
other consumer products is therefore within
easy reach of customers.
Its financial performance improved over
the year with a profit after tax of HK$143.66
million (RM64 million) for the financial year
ended April 30, 2009 compared with HK$95.57
million (RM41.76 million) the year before.
Cosway Malaysia managing director,
principal founder and driving force behind
the success of the group Al Chuah said: “Our
chairman, Tan Sri Vincent Tan has been a
great source of inspiration encouraging the
management to think out of the box if we
want to succeed in international markets.”
He said China is a market that no one can
ignore and being in Hongkong “puts us a
stone’s throw away from, arguably, the big-
gest market in the world”.
“We are researching the regulatory re-
quirements in China for our type of business
and are eager to establish a physical presence
as soon as permit-
ted,” he added.
He said ad-
ditional incentives
for loyal executives
and staff paid off as
it has resulted in
loyal and productive
employees who are
better incentivised to
drive the company’s
performance.
Executive di-
rector of B-Corp,
director of Cosway
Malaysia and chair-
man of BHK Chan
Kien Sing said he
is confident that
the re-organisation
plan will further raise the profile of Cosway
Malaysia in line with its global outlook and
expansion drive when the plan is fully im-
plemented.
“Putting Cosway Malaysia’s unique direct
selling business into BHK, which is listed in
Hongkong, an international financial centre,
will afford a more transparent indication
of the value of the Cosway business for
the benefit of B-Corp, its stakeholders and
shareholders,” he said, adding that in spite
of the losses BHK has accumulated, BHK
shareholders should appreciate the fact that
they have not been asked to take a haircut.
The re-organisation plan is expected to be
fully implemented by the end of this year.

Prime benefits for CIMB customers

by Alyaa Alhadjri
newsdesk@thesundaily.com
KUALA LUMPUR: CIMB Bank
yesterday launched its CIMB
Prime Plan – a comprehensive
product proposition built around
approximately 5.2 million or 8%
of its existing customer base.
“CIMB Prime Plan offers
a range of products, services
and privileges that cater to a
segment of customers which
is at the stage of accumulating
wealth,” said CIMB Bank head
of retail banking Peter England.
“This segment mostly com-
prises young professionals,
working graduates, managers,
and entrepreneurs who aspire
to have some priority service
levels and relevant products
that meet their needs,” said
England during the official
launch held at Delicious DUA
Residency in Ampang.
England said the plan con-
sists of a CIMB Prime Account,
CIMB Gold or Platinum credit
card, and three dedicated prod-
ucts included in the bundle.
“Its three dedicated products
are the Prime Savings Account
that offers an additional 1%
interest rate per annum for a
minimum monthly deposit of
RM200; Prime OD Line that offers
standby overdraft facility for any
fixed deposit placement within
three hours via the CIMB Prime
Call Centre; and Prime Mortgage
that allows customers to re-price
their housing loan rate every five
years at preferential rates,” said
England.
CIMB Prime Account is an
interest-bearing current ac-
count with added facilities that
include daily ATM withdrawal of
up to RM10,000, SMS alerts for
selected transactions, consoli-
dated statements, and priority
service at CIMB Bank branches.
Acknowledging its clients’
need for value, the plan also
offers Prime Bonus Points for
every ringgit spent on their
CIMB Gold or Platinum credit
cards, as well as other banking
transactions with CIMB.
England said that CIMB
targets to attract 15,000 new
customers by the end of this
year and another 100,000 by
2010 with the launch of the
plan.

AirAsia increases flights to meet year-end demand

KUALA LUMPUR: AirAsia Bhd is increasing
the frequency of flights from its Kuala Lumpur
hub to Langkawi, Kota Kinabalu and Kuching to
cater to the higher demand during the upcom-
ing year-end holiday and festive season.
The extra flights will open for sale on Oct
14 and service will commence from Nov 16
to Jan 6, 2010, said AirAsia in a statement
yesterday.
AirAsia is also increasing flight frequencies
permanently to Johor Baru and Penang from
the Kuala Lumpur hub, effective Nov 19.
To celebrate the added frequencies, AirAsia
is offering an all-in-fare from Kuala Lumpur to
Johor Baru, from as low as RM9 and to Penang
from as low as RM29. – Bernama