AFB is an Islamic Bank largely owned by middle eastern investors with Capital of some RM500mln and total assets of some RM5bln.

Major investor reportedly in talks with Asian Financial Bank (AFB).

Bank Raakyat Chairman and senior executives arrested. Something could start to brew again. Good to collect MBSB now?

High CPO production season in force now which will see lower prices for palm products. FGV share price seems to have absorbed the good news. own opinion is for prices to start retreat and could be headed below RM1.60.

caution

Rights issue may be aborted.

wont be surprised if rights issue at 70sen based on 1.15 today. This way they have to issue 1:1 and top up 30sen from the share premium.
Another possibility is rights issue may be called off.

They announced this aggressive plan that is spread up to 2017 to bring them up to Banking standards upon the advice of Bank Negara. By doing this it will also put them in a much better position to face the next phase of their expansion i.e. to apply for commercial banking on their own or in any merger exercise.

Regarding the impairment provisions, whilst I tend to agree somewhat that it gives the people the impression that the impairments are increasing due to higher non payments, I have read closely to note that the impairment provisions were accelerated in the last qtr. of 2014 when they switched to follow the commercial banks way of classifying impaired loans as those that are in arrears for more than 3 months instead of their previous practice of 6 months.

17 for 20 was the basis used in the proposal by basing on the existing price of 1.37 less divididend of 3 sen proposed = 1.34 and the TERP price 0f 0.82. so based on the issued capital of 2.842bln shares they would issue 17 for 20 = 2.416shares @ 0.82 to raise the target of RM2bln.
However since the price has since gone down to 1.20- 125 range, they will have to base the rights price on this range, hence my estimate of 0.75sen. They could come up with another formula and I could be wrong.

because of the negative sentiment currently affecting this share, it is possible for the price to retreat to as low as RM1 ex rights. I am suggesting that new entrants should hold back now and wait to pick up after the rights adjusted price i.e. dont buy in now to be eligible for the rights.
Existing shareholders who have no desire to take up the rights should have got out by now.
Based on the recent price I am guessing that the rights price could be as low as 0.75sen which translates to the RM1 exrights price. The basis I guess is like 19 rights for 20.

Short term punters should stay out of this counter. Rights Issue will be attractive price and good for long term investment.
EPF majorshareholder with more than 65% and recently Chua Ma Yu revealed he owns more than 6%...surely he must know that this is worth holding and probably know more than others do about the prospects.
If you scrutinize the annual report, total shareholding by EPF, CHUa and others holding more than 2% account for more than 85% of the shares.
I feel it is good time to buy for long-term and pick up the rights issue.

Short

Hian - Yes you have to pay RM34800 to take up the 42500 rights at 82sen each. May I ask you why is it you have not received the Circular from MBSB as yet, suggest you call themor talk to yourrRemisier. The notice for the EGM is also included in that Circular. The EGM is to be held on 5th May 2016 when the proposals will be up for Shareholders approval.Note that the final price for the rights issue will be subject to adjustment based on the price fixing after the EGM. The 0.82sen is a preliminary assessment based on current price of around RM1.35.
Looks like you need to contact your remisier for further details and try to attend the AGM/EGM. Hope this is helpful.

Plaxo - the 42,5K rights shares is based on the proposal documents which you should have received i.e. 17rights shares for 20. (your 50divide by 20 x 17 = 42.5.

hian - Under the 1st call you will be eligible to subscribe for 42.5k shares at 0.82 payable in cash of 34.8K which bring your total shares to 92.5k cost RM110.8K. under the 2nd call MBSB will credit your 0.82sen with 0.18sen from its Share Premium account (no cash from you). The end result is you have 92.5K shares of RM1 each which cost RM110.8K or average price of RM1.20. The NTA of MBSB after the rights issue will be diluted to RM1.28 from the current RM1.71.
MBSB has stated in its prospectus that it will continue to make provision of 700mln for the next two years to bring its loan coverage ration to about 1.2% in line with the industry standards. Clearly the rights issue is attractive but the price is to treat it a long-term investment especially as it targets to become a stand alone Islamic Bank. I am in it for the long haul as well.

hian - since you hold 50K shares @RM1.519 total cost 76K.

The fact that production of fresh fruit bunches have fallen much more than other plantation companies could suggest that the management has lost control of pilferage of the fruits. This could be a widespread weakness with settlers or harvesters selling off the harvested fruits to middle men who then resell it to FGV mills. I guess this is one of the major weaknesses in the group. Estate managers performance targets and follow up management monitoring could be improved.

I sold mine today at 2.61 ....happy to take profit since bot at 1.72.

Iheld on to KAF since last year ..bot at 1.72 and now worth 2.70 since buyout offer is announced...today KAF closed 2.61 so took profit.
Similarly I am holding 150K shares is MBSB patiently....matter of time there will be an offer at around the same price...i hope and wish everyone good luck.

NTA is RM1.78 and based on previous RI @ 1.63 I frankly think this stock has been hammered by the analysts trying to outdo each other and the public following like sheep. Look at bimb NTA is below RM2 and yet trading about RM4. Overall market sentiment is weak yet another reason for all stocks to be down. MBSB is bound to go up since next RI will have to be priced above RM1.63 after 25 to 30% discount to market price. Matter of time. Weak sellers should of course get out and I think most have alrready done so.

DRP total subscribed 121mln.shares against 170mln. on offer. Assuming EPF took up 64% full entitlement = 109mln. leaving only 12mln. taken up by others. I too opted for dividend in full.
At current price it is unlikely there will be call for rights issue which is more likely when price above 2.20. Note last rights issue was in end 2013 at 1.63. RI would normally be at 25 to 30%discount to market price. Also note they paid 33sen dividend prior to last rights issue. So I have to decided to hold while the weak sellers quit.

some people like to make comments based on emotion perhaps related to losses they suffered on this counter. I too am down 6 figures but I still have confidence and hold on, base my comments by reference to past six years results and the management drive towards the next target towards becoming intergrated with an Islamic Bank. Anyway each individual should make your own decision as there are always risks in investing in stocks.

Hold tight for long term ...they have been posting consistently good results except that now they have started increasing provisions to be in line with the banking industry. I guess they will still pay 10sen dividend on the way towards strengthening their balance sheet which will then see their prices taking off as they come closer towards clinching Islamic Bank status on their own or through merger.
Another possibility is for EPF to take it private say at 1.4 times book value before merging with say BIMB....any comments welcome.

They had a RI in 2014 - 1 rights share for every 2 held @ RM1.64. Now talking about raising 3bln through RI again - maybe there is something brewing or maybe just talk only no action.

This week's Edge quotes the CEO of MBSB saying that they plan to raise RM3bln through a rights issue which is expected to be announce sometime middle of this year. The proceeds are towards business expansion through a Merger and Acquisition exercise. They are not interested in KFH but an Islamic commercial Bank like Bank Islam which is still in their radar. It was also mentioned that the major shareholders could be in discussion.

Price has gone down to the DRP price of 1.91 and is no more attractive to take up DRP. better take dividend...this is what EPF will also do looks like since it makes no sense otherwise. Price will start adjusting once the DRP ex date and market conditions improve. There is always possibility of a merger on this counter.

No more sense to opt for DRP...better receive dividend and let EPF end up holding nearly 70%. If possible hold on to shares ....management is on the right track ....good longterm.

If you can afford just buy for long term.

Follow the guide in the Notice of AGM. (must bring IC)

Maybe something worth within RM10.

I think it will follow the AGM on 15.4.15 when they will decide the dates for the average price. Maybe not later than end April.

As I explained earlier, the DRP price will be based on the weighted average traded price for the preceding 5 days (days not selected yet) less the declared Dividend 12sen less a further discount upto max.10%. So the lower the price the better until the DRP is fixed.

Better for price to remain low until DRP price is fixed.

AGM 15.4.2015.

Selling and buying back 1lot share is common practice just to influence trend. Looks like trying to push down price for DRP price fixing range. collect..collect....collect.

Looks like there is concerted effort to keep MBSB prices on the low side steadily, this could be due to DRP whereby they have to fix the price on the basis of average price for the last 5 trading days after adjusting for the declared dividend. My guess, say they target 5 trading days in April, average price is say 2.20, so the DRP price may be 2.20 less0.12(Div.) less upto 10% discount. Based on this the DRP price at max.10% disc. will be 1.872.
In summary it is better for the price to remain low until the DRP price is fixed.

Market sentiment will remain weak at least until 1MDB audit by Auditor General as well as release of latest results .....better to wait for improved situation. Interest rate hike in US seems imminent and has already affected the market today. I will wait patiently...after all there
is the 12sen dividend.

what about the possibility of Affin being part of a tri-partite merger? Hope not, since when it was a three-some, it got aborted.

Is it worth noting that MBSB is trading at 1.3 x book value(2.20) vs.BIMB at 1.9 times Book (4.04). The recent failed merger valued MBSB at 2.82 and therefore is not feasible for the new merger to value MBSB at 1.9 times Book value (1.73 x 1.9 =3.28) in order for BIMB shares to NOT fall because of the merger? Also bear in mind that MBSB cost to income is around 20% vs. 50% for BIMB.

Interesting to note that MBSB is trading at 1.3 x book value (2.20)vs. BIMB at 1.9 x book value(4.04). The failed merger vauled MBSB at 2.82. Is it worth considering that MBSB has the potential to be valued at 1.9 times as well (upto 3.28) in order for BIMB shares to not drop because of a merger.
Also note that MBSB cost to income is much lower at 21% vs.50% for BIMB.

I am long term investor too as this is a good takeover target and secondly it has good potential to turn into a commercial bank. I am a small investor with less than 150K shares.

Bought at 2.31 and quit at 2.80. FGV seems to have too many unprofitable ventures besides the old Palms. Profits from downstream are at best marginal, whilst its foray into Biodiesel by buying over loss making Mission Biofuels are not a good decision in my experienced view..
Intend to wait out aroung 2.00 before to decide.

Happy Gong XI Fa Chai to all Chinese friends here and everywhere. Neighbour just gave me a carton of honey KUM ....neighbours for 37 years.
Wish everyone here a better and luckier year ahead....include me please.

a good long term investment... also a prime target for take-over due to its market niche and better than industry average ratios.

just read that Ananda's Usaha Tegas will be paying the 2Bln before 18Feb after having received EOD(event of Default)notice from lender banks. Usaha Tegas is guarantor of the loan.

Ananda is reported to be making payment before the 18 feb since it is guaranteed by his Usaha Tegas.

Just read RHB CEO resigned.

Jason n vinvin- both of you are right, my dream based on the fact that MBB does not have to declare its share of the loan to 1MDB as NPL as at 30.12.14 since it is only due 2 months instead of the 3months for its NPL classification. The NPL event may be declared in the notes under "events since the Balance sheet date" which again is fully recoverable.
Recent indications that foreigners are nett buyers.
Even then I could still be wrong in terms of price expectations...wish you all luck and trade at own risk.

should cross RM10 by end of month.