Bumper dividends may mitigate sports betting
disappointment
The government has retracted the approval for the issuance
of a sports betting licence to Ascot Sports (supposed to be
injected into Berjaya Corp).
Impact to Berjaya Sports Toto (BST) should be minimal (1-
2% of earnings), given their agency role.
Maintain Buy on BST and TP of RM4.80, based on dividend
discount model. Although there could be some negative
knee-jerk reaction, share price may be supported by
expectation of bumper dividends. BST will be embarking on
a RM800m medium-term note programme, which could be
used to part-finance parent Berjaya Land’s
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