BJ Corp - Value Trap!

Berjaya Corp is a conglomerate that needs no further introduction. I'm just simply going to list down some of the estimated value of its subsidiaries base on 2013 annual report to demonstrate how undervalue is the stock.

Listed Companies (% hold by BJCorp) (Market Cap in million as of Aug 11 2014)

Berjaya Toto (48.64%) - 2,498.35
Berjaya Philippines (88.26%) - 1474.56 (currency conversion rate of RM 1 to 13.72 peso)
Taiga Building Product, Canada (39%) - 31 (currency conversion rate of 1 CAD to RM 2.92)
Berjaya Media (13.39%) - 15.74
Silver Bird (14.35%) - Neglect-able
Informatics Education Ltd, Singapore (28.38%) - 78.7 (currency conversion rate of 1 SGD to RM 2.56)
Magni Tech (23.32%) - 77.92
TMC Life (27.36%) - 105.37
Atlan Holdings (26.30%) - 306.86
Berjaya Food (64.87%) - 510.39
Berjaya Land (54.67%) - 2312.46
Berjaya Assets (16.38%) - 150.41
Berjaya Auto (50.48%) - 1036

Total - RM 8,597.76 Million. May be we take a 30% discount due to holding company, it is still RM 6,018.43. Divide with the total outstanding BJCorp shares of 4,151.61 mil, net value per share will be RM 1.45

Honestly, to get the exact enterprise value of BJCorp is seriously out of my knowledge due to complexity of the structure of the company. But after looking at these numbers, I suddenly have this wild thinking. If some one is to spare me a RM 3 Billion, I would like to privatize the whole company at RM 0.70 per share for total RM 2.91 Bullion. After that I find buyers for shares of BJToto, BJ Philippines and TMC Life (receive general offer anyway) for around RM 4 Billion to return the borrowed money with interest then I should get the rest of the conglomerate for free. Nice....

Here are some of the notable subsidiaries that are not listed:

Cosway (HK, Malaysia and other countries), Berjaya Books (Borders) , Inter-Pacific Securities, Berjaya Capital, 30% of Berjaya Sompo Insurance, Kenny Rogers, Jollibean Food, Wendy's restaurant, Papa John's Pizza, Berjaya Air and whole bunch of properties, resorts, golf courses and hotels and much much more subsidiaries. These are the assets that I have no clue how to value but I'm certain it worth a lot of money.

So with all these assets, why BJCorp only trade at around RM 0.50 which is substantial discount to their value? Honestly I really don't know. In fact I hope that some one can enlighten me on that.

Chart : BJCorp daily chart as of Aug 11 2014 (source: ChartNexus)

In addition, BJCorp has been aggressively buy back their own shares which to date amount to some 150 million shares or some 3.6% of total outstanding shares. Which means another 3.6% discount if the treasury shares were to cancel.

Under value? I don't know, but to me it seems like a Banyak Jus Corporation.