Berjaya Sports Toto Bhd has proposed to spin off Sports Toto Malaysia (STM) into a Sports Toto Malaysia Business Trust. This has prompted me to look into BST and I will share my findings in a 2 parts analysis. This is my first time going into an analysis of foreign share and I have realised the additional difficulty of securing information. Under the deal, Berjaya Sports Toto will hold on to 79.5% of the shareholding of STM and they will get RM 670m in cash and RM 527.4m in promissory note. As always, we will start off with the financial statement analysis.
Figure 1 Income Statement
Looking at figure 1, we can see revenue increasing slowly over the year, peaking in 2009. Subsequently, revenue has dropped by 8.2% in 2010 before a 1.2% increase in 2011. The 2010 drop in revenue is as a result of lower ...
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