- 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
No comments:
Post a Comment