Journey to Wealth
MPHB - Sells stockbroking arm
- Multi-Purpose Holding Bhd (MPHB) has proposed to dispose of it stockbroking arm, AA Anthony Securities Sdn Bhd, to UOB Kay-Hian Holdings Ltd for a consideration in a range of RM165mil to RM170mil.
- This is not new as it was first reported in the press in May 2012.
- What is new is the buyer.
- Previously, it was reported that AA Anthony would be sold to its management team via a management buyout.
- Now, UOB Kay-Hian has emerged as the buyer of AA Anthony.
- We view the disposal positively as MPHB would be a step closer towards becoming a purer NFO company.
- The group is targeting to list its property and insurance assets via SPV Capital by 1HFY13.
- Based on a selling price of RM170mil, this would value AA Anthony at a Price/Net assets ratio of almost 1.0x and FY11 PE of 13.6x.
- AA Anthony recorded revenue of RM29.1mil and net profit of RM12.5mil in FY11.
- The disposal of AA Anthony would result in a gain of RM44.4mil for MPHB.
- Completion date of the exercise is 4QFY12.
- We have a HOLD recommendation on MPHB currently.
- We would be reviewing our recommendation on MPHB as our fair value now suggests a 13% upside due to the fall in the share price.
Source: AmeSecurities
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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....
