What to know about Malaysian tycoon Vincent Tan’s recent Berjaya Corp share moves

Tan disposed of 461.65 million shares in the conglomerate for about RM115 million (US$28.1 million) across seven transactions in late May. The disposals temporarily caused him to lose his status as a substantial shareholder in six listed companies, among them Salcon, REDtone Digital, Sports Toto and Berjaya Property, as his indirect stakes through Berjaya Corp dropped below the 5% threshold.

That same month, Berjaya Corp and its listed subsidiary Berjaya Property transferred stakes in five listed companies to Detik Ria, a privately held investment vehicle partly owned by Tan, via direct business transactions collectively valued at RM76.8 million.

The moves were followed by Tan’s purchase of a 2.03% stake in Berjaya Corp through several direct business transactions earlier this month.

After the latest dealings, Tan holds a direct stake of 6.13% in Berjaya Corp and an indirect interest of 10.96%. Before the May disposals, his combined stake in the group stood at about 23%.

Here are some things to know about Tan and the recent transactions, which analysts say may offer insights into the conglomerate’s future direction.

Tan, Berjaya Corp and Detik Ria

Tan began working after completing high school at age 17, starting as a bank clerk before moving into the insurance sector. He got his big break by securing the McDonald’s franchise in Malaysia.

He later established Berjaya Corp and built it into a diversified conglomerate with interests ranging from retail and gaming to telecommunications, property and food and beverage businesses. He stepped down as the group’s non-independent, non-executive chairman in 2023 but remains an advisor to the board.

Forbes ranked Tan as Malaysia’s 29th-richest man in April with an estimated net worth of $940 million. A 2008 article by the magazine painted Tan as quick to pounce on deals and someone whose developments shareholders find hard to keep track of.

Some of the companies whose shares were recently transacted are part of the sprawling Berjaya empire, such as REDtone Digital, Sports Toto, Berjaya Property, Berjaya Food and 7-Eleven Malaysia.

Detik Ria is linked to the Berjaya group and several of its key figures. Its deemed major shareholders include Berjaya Corp and Tan, along with Johor princess Tunku Tun Aminah Sultan Ibrahim Ismail, who is the non-executive chairman of Berjaya Corp, Berjaya Property and REDtone, according to The Edge Malaysia.

The shares transferred to Detik Ria last month included those in Berjaya Property, Berjaya Food, REDtone Digital, 7-Eleven Malaysia and Salcon, broadening its footprint across the Berjaya group.

Detik Ria also has a substantial stake in Berjaya Assets, another company within the business empire, and a 30% stake in Prudential Assurance, an asset that forms a major part of Tan’s unlisted insurance interests.

Bloomberg reported in late May that Tan was considering a sale of the Prudential stake.

What analysts are saying

Analysts cited by The Business Times view the recent transactions as a likely reorganization of ownership within the group rather than a move by Tan to reduce his exposure.

Neoh Jia Man, portfolio manager at investment firm Tradeview Capital, said the scale and timing of the deals suggest they should be seen as a strategic reshaping of holdings rather than routine trading.

Market observers also expect Tan to refocus on extracting value from his major private assets, particularly his telecom and insurance businesses.

The recent transactions could also be part of a leadership transition that may move the Berjaya empire away from its founder-centric structure, according to analysts.

Neoh said a transition to the next generation of leadership could strengthen corporate governance and rerate the group’s historically depressed valuations.

Leadership transition

Tan, who has 11 children, has previously said he would prefer that his children not get involved in his listed businesses.

“My children can start their own business as they already have. We need to have a clear demarcation of listed and private entities,” he told The Star in a 2021 interview.

“This could also involve having a family constitution that defines involvement within the group so we pick only the best for the job.”

Tan seems to have steadily distributed responsibilities across the Berjaya group among several family members over the years instead of grooming a single heir. He has also brought in professionals to manage day-to-day operations.

His eldest son, Robin Tan, serves as executive chairman of Sports Toto and deputy chairman of Berjaya Property, giving him a prominent role in the conglomerate’s strategic development.

Meanwhile, daughter Chryseis Tan sits on the boards of Berjaya Corp, Berjaya Property, Berjaya Assets and Berjaya Food. Robin and Chryseis are both linked to Detik Ria, according to filings cited by The Edge Malaysia.

Another daughter, Nerine Tan, is chief executive officer of Berjaya Corp, overseeing the group’s operations and long-term strategy. Some of Tan’s other children have also taken up positions within the Berjaya group or businesses associated with the tycoon.

Vic Chuah, director and founding partner of consultancy Spartan Ives Advisory, described the shift as a “classic transition from founder to guardian” among Malaysian family-controlled conglomerates.

“For the average shareholder, this transition means reduced uncertainty and lower key-man risk, leading to greater financial stability in future,” he told BT.