KUALA LUMPUR: Tanjong plc yesterday signed an agreement to sell its entire stake in Pan Malaysian Pools Sdn Bhd (PMP) to a consortium of Malaysian Chinese businessmen for RM2.1 billion, according to sources familiar with the deal. PMP owns the country’s third largest numbers forecast operator (NFO).

The sources said the consortium taking over the gaming asset comprises Genting Group’s Tan Sri Lim Kok Thay, Hong Leong Group’s Tan Sri Quek Leng Chan, the Lion Group’s Tan Sri William Cheng and Tan Sri Chua Ma Yu.

The businessmen’s  bid for PMP includes plans to eventually list the NFO on Bursa Malaysia, sources said.

Additionally, the group has pledged to allocate a certain amount of PMP’s profit for charitable causes, including donations to Chinese schools, a source said.

Lim’s share in the consortium is between RM250 million and RM300 million, according to the sources, but it is uncertain how much the other tycoons are paying as part of their share in the consortium.

It is learnt that a local bank will provide the consortium a loan facility of RM1.5 billion to fund the purchase of PMP.

News that PMP was for sale had piqued the interest of many corporate players, including Olympia Industries Bhd, which is controlled by Datuk Yap Yong Seong (better known as Duta Yap) and Rimbunan Hijau Bhd, a vehicle of Tan Sri Tiong Hiew King.

Other suitors for PMP are said to include the Cheng family, who own a slot machine business in the Klang Valley; Datuk Lim Kang Hong, who controls Ekovest Bhd; and Filipino tycoon Roberto Bobby Ongpin.

At one point, Lim’s Genting Malaysia Bhd was said to be keen on acquiring PMP. However, some gaming analysts had opined that such a move appeared to diverge from the Genting Group’s strategy of overseas expansion in the gaming business.

Huaren Holdings Sdn Bhd, the investment arm of the MCA, was also once rumoured to be interested in buying the gaming asset to generate funds for the party’s social projects but party president Datuk Seri Dr Chua Soi Lek denied the speculation.

PMP runs the NFO games under the banner “Da Ma Cai”, race totaliser business and the management of horse breeding and related activities of the National Stud Farm.

The NFO was put up for sale shortly after Tanjong, a flagship of tycoon T Ananda Krishnan, was taken private last July in a deal worth about RM4.4 billion.

The divestment of PMP is said to be part of Tanjong’s bid to be syariah-compliant as it looks to expand its power generation business by tapping markets in the Middle East, North Africa, South and Southeast Asia.

This article appeared in The Edge Financial Daily, August 2, 2011.