Before MCO , in 2019 , speculation that Flamingo Ampang received offer at 250MM for 13.9 acres of land + office tower + hotel.
I goggle using Goggle Map. The hotel at very strategic location and very valuable for redevopment.
Should not be a problem to find a buyer for outright sales or JV for redevelopment

@johnzhang @theContrarian

I went through the Quarterly Report and the Insurance Sales announcement. Tallying the #.

Only left with RM480MM in cash and short term investment and assets at 791MM. No longer RM700MM in cash and short term investment.

Some cash from land disposal might be use for other means such as adjustment on the fund , purchase of land ( refer to material litigation 3 or 4 years ago )

@johnzhang

AGM will be virtual. Good for me as I'm not staying in KL. I already registered and pending update of dail in code when getting closer to the AGM

Just need to be patient waiting for management to disclose their further plan.

They should address during AGM

What they will do with the remaining cash in hand of RM480MM

Distribute a portion as dividend ?
M&A - acquisition or investing in property development company like BRDB which took private in 2013. Will BRDB going for IPO again ? I'm checking on BRDB as seem like MPHBCAP engaged with them in the past in JV projects to unlock the value of the land ?
A portion as working capital ?

Of the properties and lands

I think for the remaining RM480MM , question should be raise during coming AGM. I'm expecting during AGM , they will provide an update of their plan for this , included how to unlock the value

*betting

I started to invest in MPHBCAP since spin off from Magnum through capital repayment. I sold off all Magnum stock after completed the exercise then switched MPHBCAP and temporary parked at REIT for dividend when the price above 2.
Recently I switched back to MPHBCAP in 2019 berring that Generali will not exercise the Put Option and ready to take advantage of the proceed from the 49% disposal.

I have contacted those holding MPHBCAP that I know. We will vote for the resolution in EGM. Our holding should be 0.5% to 1%

I think the best interest for minority shareholders is the completion of disposal of insurance business and tranfer to property division.
No matter what the management propose in the future , it won't be worst than today

I strongly believe those significant holder of MPHBCAP will vote for the resolution. As if the EGM fail , will back to square one. No dividend..continue waiting as the company has no fund to develop the property and still under the scrutiny of BNM

My view

As the EGM is about the disposal of 51% of Insurance holding , should they provide the break down of the utilization of the proceed of 518.16MM only or everything about the company ?

My view was that the breakdown of the utilization of proceed is fair which address the rewards to the shareholders , to address PN1 status ( no core business after disposal of insurance business ) , working capital and repayment of debt.

After this , only dealing with the remaining of cash and asset post disposal

@theContrarian

Here is my understanding about the Nomura fund

When Generali purchased 49% of MPHBCAP Insurance business , MPHBCAP granted a 3 years call option to increase further 21% and a 5 years Put Option for Generali to resell the 49% of MPHBCAP insurance business to MPHBCAP if the Call Option failed to executed.

As a probation to the Put Option , MPHBCAP need to keep the fund to repay Generali when the Put Option executed.
In the Put Option , stated clearly the calculation of the redeem price ( adjustment ) where MPHBCAP increases the amount over time from cash in hand

I went through the announcement and quarterly report yesterday.

My finding as above

Total cash and short term investment = about 980MM

After deduction of 508.16MM , with RM480MM in hand , which equal to RM0.66 per share.

Asset ( property and land) = 791MM at book value

Conservative calculation , value above RM2B

My view , utilization proceed of 518.16MM will be 1st phase of the action , more action follow after completion of phase 1 action.

More news will be release phase by phase to get the analysts excited like M&A etc

Looking forward for the AGM as I think many questions will be thrown to the management regarding post insurance sales. Can get some light from the sharing.

Why want to put so much attention to predict the daily stock price up and down unless with plan to transact now ?
Else , relax and wait for announcement of EGM date follow by AGM.

I take a neutral stand as of now. Just wait and see , then react. Cautiously optimistic is my usual strategy

I started investing in the 90s. Many majorshareholders did that , privatizing the companies when the stock value way below their value and IPO again many years later with hefty return.
Recently for many cases , minority shareholders awareness increases , team up together and through legal action , blocking unfair deal and delay the execution.

Don't worry too much. Relax and have a nice weekend.

If the management didn't do anything after disposal of insurance business , will be classify as PN1 status.
Privatization possible or the company acquire new businesses through M&A or more JV to release the value of the land bank

@Kaya Toast

Do you have the full report from AM investment ? Can look at it in more details. Thank you

My understanding when MPHBCAP 1st declare 5 sen of dividend.
MPHBCAP yet to dispose the land at Sungai Rusa , Balik Pulau and Pengerang.
MPHBCAP didn't explain the reason of the rejection by BNM but from write up I read , it mentioned that BNM rejection due to the stringent cash flow or liquidity for insurance businesses.
As MPHBCAP selling away insurance business and no longer need approval from BNM for dividend payment , the management will able to pay dividend as long as not exceeding the retain earning. It will be different ball game after the disposal

Scenario 2 will be the best for minor shareholders. While getting cash , can still participate in long term gain from the asset.

My personnel view was that Majorshareholder didn't need cash from MPHBCAP. HE can get cash from Magnum. As Magnum holding few % of U Mobile shares , once U Mobile IPO , Magnum will return the cash to shareholder. The land more valuable to him than cash

@johnzhang. Agree with you. Assume 63.4% of shareholding willing to accept the SCR , majorshareholder will end up with few billion worth of assets , which translated into more than RM10 per share

@johnzhang. Thanks for sharing the term

@theContrarion

Regarding the RM460MM , my view was that this amount of money is not keep aside for dividend payment.
Is a probation if Generali exercise the Put Option by or before 15th Nov 2020 ( if I remember the date correctly ). The amount adjusted every quarter during the QR to reflect the latest calculation as per the deed.
After the Put option lapse , only MPHBCAP can utilize the cash

@TheContrarian

I'm using the privatization term to reflect the action where some company using the internal cash to buy over the remaining of the share while still keeping afloat. ( as per the announcement last Friday)

Do you have any idea of the term use for this action.

My advice. Don't pay too much attention on the short term fluctuation of the stock price. Vote for the resolution during EGM. Attend virtual AGM on 30th June. Then celebrate in Q3

If scenario 1 and 2 happen , stock price will boost beyond 2.
If scenario 3 happen , stock price will stay at current level

I think scenario 1 and 2 higher probability to happen than scenario 3.

Scenario 3

Minimum dividend pay. Keep all cash for acquisition or working capital. Unlock the value of the asset

Scenario 2

Pay RM1 dividend. Keep remaining RM1 per share as working capital or acquisition of property development company to unlock the value of the asset

1. Privatization but remain listing

Majorshareholder with 36.6% holding ( based on JoeZhang's data ) will offer RM3 per share ( against NA of 2.82 ) to remaining shareholders. If all shareholders taking the offer , will be RM1.35B
Shareholders has the option to cash out or holding the stock.
MPHBCAP will merge or JV with property development company to unlock the value of the asset. New shares will be issue through private placement

Base on above assumption. 3 possible scenarios

1. Retain earning after disposal of insurance arm = RM1,034,000,000. Which means max dividend per share the company can out at 1.40 per share

2. Cash in hand and high liquid asset at RM1.4B

3. MPHBCAP has no expertise in property development. The company need to JV with other company to unlock the value of the asset. MPHBCAP will contribute land instead of cash to the JV

Assumption from observation of MPHBCAP for past few years and information available publicly

My thought of scenarios how the company will utilize the fund

I believe once completed the disposal , the situation will get firmer , analysts will back in coverage and the stock price will boost

As of now , most important is to get EGM going and support the resolution and get the disposal of remaining 51% of MP insurance successful executed and classify as property sector.
Next only deal with the money

Here is my thought about MPHBCAP

I have not being paying much attention on MPHBCAP since last June as I have set my TP at 2.50. I continue to accumulate as usual. My focus was on BPlant until recently , was quite fortunate to sell all close to the peak and switched over to MPHBCAP and boost my holding beyond 0.1% of outstanding shares

Margin call like last march 2020 will be the best timing for me. Will pump in fresh fund for 1 month investment period. Picked up stocks..sold and returned the fund back to the account. Profit will reinvest.

Invest wisely , don't let your emotion drive your decision. Don't panic , execute rational decision.

@johnzhang. Yes. Always an opportunity to pick up stocks during market with negative sentiment when investors panic selling. Picked up few counters yesterday and this morning for quick profit.

Stay cool. Don't let your emotion drive your decision.

Buyer sideline and observe. If selldown volume for few days very thin , might accumulate again to next level. Hopefully my perception correct. Let's monitor.

@Goh123. I treat the low volume as a good sign. Flush out the weak holder.

@Goh123. Q1 , plantation stocks net profit not so good due to lower output.. For Q2 , price and output increases as compare to Q1. Net profit should be record high.
Is good sign if CPO price at historical high but stock price lagging behind. Means that it yet to reflect in the stock price.

Sharing of my current investment strategy. I hold plantation stock as well in my portfolio which I accumulated around March to July 2020 time frame which currently at around 2x of the investment value. I'm expecting plantation stock I hold to announce record breaking quarterly net profit and dividend in August during QR. Hopefully by then the stock price soar and will switch the fund over to MPHBCAP if still stay around 1.50 to 1.60 while pending BNM approval.