Berjaya Corporations Bhd (BCorp) shares declined after resuming trade today following its decision to call off its plan to acquire a 70 percent stake in Ascot Sports Sdn Bhd.

NONE At 10.05am, BCorp shares had fallen eight sen to RM1.28 with 3.71 million shares traded as the decision to abort the acquisition came after the government's decision not re-issue the sports betting licence to Ascot.

As the market came to a close, BCorp's share prices fell 13 sen or 9.56 percent.

Last Friday, Prime Minister Najib Abdul Razak announced that the sports betting licence for Ascot had been withdrawn , following the Umno supreme council's decision to reject the legalisation of sports betting.

In a related development, the board of directors of BCorp has expressed their deep regret and disappointment that its intended purchase, which was announced on May 12, has been frustrated by the government despite having granted its approval for the re-issuance of the licence.

"The proposed rights issue on the basis of RM1 nominal value of 8.0 percent ICULS for every eight Bcorp shares held is also aborted," the statement read.

The board, however, remains resolute in its efforts to expand the company's portfolio and reassured that the gaming sector will remain a primary focus.

Ascot: Certain quarters politicised situation

In a statement released yesterday, Ascot Sports Sdn Bhd (Ascot Sports), one of Berjaya's subsidiaries, stated that certain quarters had politicised and exploited the situation for their own interests.

"The government has lost an opportunity to institute some form of regulation and control over this burgeoning underground sports betting activity as well as the opportunity to reap significant tax revenues."

NONE "We maintain that the benefit of legalising sports betting will far outweigh the perceived negative impact", it added.

Ascot Sports however took consolation that there was equally as many independent views in support of legalising sports betting, and thanked various parties for sharing their views, advice and support.

The company also remains firm in its belief that sports betting needs to be legalised in the country.

Ascot Sports also asked the government to re-evaluate and reconsider its decision with regard to legalising sports betting.

"We (Ascot Sports) remain ready, able and willing to exercise its first-right-of-refusal which was granted to the company in 1990," the company reiterated.

In a message to shareholders, Ascot Sports chairperson Vincent Tan said: "To all those who supported legalising sports betting, you are the true embodiment of 1Malaysia. You are rational realists and true leaders of our multi-cultural and multi-religious society. You are not a hypocrite nor a humbug nor a holy pious pretender but a true God-fearing devotee of a better Malaysia."

Ascot Sports, was initially granted the licence in 1987, but it proved to be an unprofitable venture before the advent of satellite TV and the Internet in Malaysia.

That licence was revoked in 2004 under then premier Abdullah Ahmad Badawi, but was "pending re-issuance" as stated by Berjaya which had exercised their right of first refusal.

Sports-betting was supposed to be offered at 220 selected Sports Toto outlets in Peninsular Malaysia in September, in time for the next season of the highly popular English Premier League.

Sports Toto is also part of the Berjaya group of companies.