- Multi-Purpose Holdings Bhd (MPHB) announced that the
Securities Commission (SC) has approved its appeal to allow relevant
disclosures on the valuation of MPHB Capital’s property assets to be incorporated
in the listing prospectus.
- However, the appeal is subject to the condition that the
professional valuers update their valuations to a more current date, which must
not be more than six months from the date of the listing prospectus. Also, the
valuers’ reports must be made available for inspection.
- We believe that SC’s condition would result in delays in
MPHB’s demerger exercise.
- It appears that MPHB would have to conduct an updated
revaluation exercise on all of its properties.
- Assuming that the listing of MPHB Capital was to take
place in May or June 2013, this means that the properties must be re-valued
based on market values as at November or December 2012.
- The last revaluation dates of MPHB’s property assets in
Selangor, Johor and Penang were March and October 2011.
- The most recent revaluation date was in respect of some of
the properties in Penang. The revaluation date of these properties was 24
February 2012.
- We are unsure if MPHB would be able to complete the
updated revaluation exercise on all of its properties on time for a listing
date in June 2013.
- We believe that if the demerger exercise is not completed
by end-June 2013, then the corporate exercise would have to be submitted again
based on audited accounts as at 31 December 2012.
- In spite of our fair value, which suggests an upside of
20.8%, we are keeping our HOLD recommendation on MPHB for now. This is due to
the uncertainties over the group’s demerger exercise.
Source: AmeSecurities
No comments:
Post a Comment