- Multi-Purpose
Holdings Bhd’s (MPHB) extraordinary general meeting for its shareholders to approve
the proposed demerger exercise of its gaming and non-gaming assets is scheduled
to be held tomorrow.
- However,
as there is no announcement released to the Bursa Malaysia, we believe that the
Securities Commission did not give its approval for the proposed demerger and
listing exercise of MPHB Capital on time.
- Hence, we
reckon that the timeline for MPHB’s offer for sale of shares in MPHB Capital
and subsequent listing of MPHB Capital is likely to be delayed.
- MPHB has
proposed to offer one share in MPHB Capital for every two shares held in MPHB.
- Recall
that MPHB Capital would hold all of MPHB’s property and insurance assets. The insurance
division recorded an operating profit of RM57.4mil in FY11.
- According
to MPHB’s circular to shareholders dated 9 November 2012, the announcement of the
entitlement date for the proposed offer for sale was supposed to take place in
earlyDecember 2012.
- The
entitlement date for the proposed offer for sale was scheduled to be
end-December 2012 while the listing of MPHB Capital was supposed to be carried
out at end-January 2013.
- The
entitlement date for the proposed capital repayment of RM0.48/share is supposed
to be end-April 2013. The proposed
capital repayment is targeted for completion by mid-May 2013.
- In spite
of the delays, we believe that MPHB’s proposed demerger exercise would go through.
- We
maintain a HOLD on MPHB. Excluding the non-gaming assets, MPHB is currently
trading
at an FY13F
PE of 14.5x.
Source: AmeSecurities
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