Journey to Wealth
Multi-Purpose Holdings - SC approves appeal with conditions HOLD
- 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
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
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 1 of 1 comments
Post a Comment
Featured Posts
Apps
Top Articles
1
save malaysia!
2
Good Articles to Share
4
THE INVESTMENT APPROACH OF CALVIN TAN
5
星洲日報／投資致富‧企業故事
6
MQ Market Updates
8
BFM Podcast
#
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....
Jonathan Keung
revaluation exercise within a time frame of 6 months is tough. MPHB hold a spectrum of landed and non landed properties. Valuers need time to update their valuations ( ie. based on last transacted price ) less whatever costs plus mark to market valuations.
2013-02-15 16:40