Journey to Wealth
MPHB - Also issuing MTNs BUY
- Multi-Purpose Holdings Bhd (MPHB) has proposed to issue up to RM1bil 20-year mediumterm notes (MTN).
- MPHB has joined a growing number of companies, which have issued MTN, to take advantage of the current attractive funding rates.
- Recall that recently, Kuala Lumpur Kepong Bhd (KLK) priced its RM1bil 10-year Islamic multi-currency MTN at 4%.
- In June 2012, IOI Corporation sold its US$600mil senior notes at 4.375%. In the same month, Genting Bhd priced its RM2bil 20-year MTNs at 4.42% to 4.86%.
- In July 2012, First Resources, which is listed on the Singapore Stock Exchange, issued RM600mil five-year Islamic MTN at 4.45%.
- In the Bursa Announcement, MPHB said that proceeds from the MTN would be used to refinance existing borrowings of MPHB and its subsidiary, Magnum Corporation. Apart from this, the proceeds may also be used to finance working capital and future investments.
- We reckon that the RM1bil MTN proceeds would most likely be used to refinance Magnum's borrowings estimated at between RM1bil and RM1.24bil. Magnum's borrowings were used to finance its capital repayment of RM3.45/share in FY07.
- The payment of Magnum's existing borrowings would result in the group having lighter covenants. This would allow Magnum to return more cash to shareholders.
- This is especially relevant since MPHB would be listing its non-gaming assets via a separate vehicle by the end of the year. We estimate MPHB's dividend yield at 4.5% for FY12F while Berjaya Sports Toto's dividend yield is forecast at 7.1% for FYE4/13F.
- We have a BUY on MPHB currently. We would be reviewing our fair value for the group.
Source: AmeSecurities
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
MQ Trading Signals
Time
Signal
Duration
Type
2024-11-04 16:20:00
EMA 5
5 Mins
SELL
2024-11-04 15:55:00
TURTLE SYSTEM 20
5 Mins
SELL
2024-11-04 15:35:00
TURTLE SYSTEM 20
5 Mins
BUY
2024-11-04 15:25:00
EMA 5
5 Mins
BUY
2024-11-04 15:20:00
EMA 5
10 Mins
BUY
Apps
Top Articles
1
5
save malaysia!
6
BFM Podcast
7
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
