Company Name MULTI-PURPOSE HOLDINGS BERHAD Stock Name MPHB Date Announced 14 May 2013 Category Important Relevant Dates for Renounceable Rights Reference No MM-130514-61039
Title / Description Renounceable offer for sale by Multi-Purpose Holdings Berhad (“MPHB”) of 715,000,000 ordinary shares of RM1.00 each in MPHB Capital Berhad (“MPHB Capital”) (“Offer Shares”) to the shareholders of MPHB on the basis of 1 Offer Share for every 2 existing ordinary shares of RM1.00 each held in MPHB as at 5.00 p.m. on 29 May 2013 (“Entitled Shareholders”), at the offer price of RM1.00 per Offer Share (“Offer for Sale”) Despatch Date 31/05/2013 Date for commencement of trading of the rights 30/05/2013 Date for despatch of abridged prospectus and subscription forms 31/05/2013 Date for cessation of trading of the rights 06/06/2013 Date for announcement of final subscription result and basis of allotment of excess Rights Securities 17/06/2013 Listing date of the Rights Securities 25/06/2013
Last date and time for Date Time Sale of provisional allotment of rights 05/06/2013 at 05:00:00 PM Transfer of provisional allotment of rights 10/06/2013 at 04:00:00 PM Acceptance and payment 13/06/2013 at 05:00:00 PM Excess share application and payment 13/06/2013 at 05:00:00 PM
Finally....the road is clear....Although you pay RM1 for mphb capitals, you get back 98sen after capital repayment when the deal is done...so basically you get mbphb capitals share almost free. Buy 2 Free 1.
where does it say we can get back 98sen after capital repayment, and when can get back? I read only the offer for sale of 1 MPHBC for every existing 2 MPHB ? pls clarify, thanks.
Hi Brothers, my father is holding 40,000 MPHB shares and he asked me what can he get? Or shd he sell the shares now. Being a layman myself, I cant answer. Can anyone help us plse. THANKS
Option 1....standby RM20k to buy mphb cap. Mphb cap go higher than rm1.00 sell at profit and then wait for capital repayment of RM19.6k. Option 2....wait for the listing of rights and sell the right. Wait for capital repayment of RM19.6K. Keep the mother for dividend. No capital outlay on this. Option 3....sell now and get nothing except some gain if you buy mphb at cheaper price.
As the details on MPHB Capital’s upcoming listing on Bursa have been finalized, we are prompted to take a look at MPHB’s potential valuation upon completion of the proposed listing All in, MPHB is still a BUY, with our FV now adjusted to MYR4.39. Maintain BUY.
- MPHB is spinning off its insurance and property business for a total cash consideration of MYR190.3m, including a debt novation of MYR77.6m as well as 715.0m new shares in MPHB Capital.
- Subsequently, MPHB will offer its existing shareholders the right to subscribe for MPHB Capital shares in a renounceable offer for sale exercise.
This will involve offering for subscription all its 715.0m shares in MPHB Capital at a 1-for-2 ratio at an indicative offer price of MYR1.00 per share.
- Our calculations indicate that MPHB Capital could be worth as much as MYR1.4bn, assuming:
i) a property RNAV of MYR736.0m;
ii) 12x P/E for its insurance arm; and iii) a pro-forma net cash balance of MYR96.4m. This will works out to MYR1.92 per MPHB Capital share.
Hence, we advocate that investors subscribe for the offer for sale.
- On 27 May, MPHB shares will trade excluding the rights to subscribe for the offer for sale. While its closing price on Bursa will not automatically adjust downward, we expect the stock price to retreat to reflect the loss of income arising from the disposal of its entire interest in MPHB Capital.
Based on our sensitivity analysis, its share price could decline to MYR3.31-MYR3.71 once it goes ex.
If we drew a parallel to the valuation of other NFO operators in the country, MPHB’s valuation could fall to as low as MYR2.98-MYR3.34.
This being said, we believe the downside to its share price would be partly cushioned by the proposed capital distribution of MYR0.49 per MPHB share by year-end.
- Our SOP-based FV stays at MYR4.39. While the upside seems limited, we reiterate our BUY and advocate that investors accumulate MPHB shares and subscribe for MPHB Capital accordingly since the MYR1.00 offer price is at an attractive 47.9% discount to our SOP valuation.
After reading the article above, I think I know what is happening. Means if I buy this share now, will get back ard RM485 in Sept and will get ard 17 sen of dividend every year if the business continue. Actually is not bad... Am I right?
capital return for 2 lots? what does it mean? what if i have 10 lots now? i will get the 10 lots x RM0.97 capital return and at the same time have 5 lots of MPHB capital subscrption right?
today already ex, mean if u buy today, u r not entitle for Right Offer to purchase MPHB-CAP. MPHB will give Capital Repayment 97sen for 2000 units in Setemper. Those want to buy the Right Offer can still do so by buying the MPHB-OS on 30/5/2013. U can send them for exercise by paying RM1 for MPHB-CAP.
Good price to buy MPHB at RM3.50 now, eventually it will move up again to above RM3.60, the adjustment is too much already, at RM3.50, the OS has to be priced at around 80 sen then only those who bought before EX can recover their cost!!
But I don't think OS can have such price, this is the trap they always created. So, as long as u can hold till the end of demerged plan .. u will get rewards.
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Posted by malaysiaboleh > 2013-05-15 07:44 | Report Abuse
Company Name MULTI-PURPOSE HOLDINGS BERHAD
Stock Name MPHB
Date Announced 14 May 2013
Category Important Relevant Dates for Renounceable Rights
Reference No MM-130514-61039
Title / Description Renounceable offer for sale by Multi-Purpose Holdings Berhad (“MPHB”) of 715,000,000 ordinary shares of RM1.00 each in MPHB Capital Berhad (“MPHB Capital”) (“Offer Shares”) to the shareholders of MPHB on the basis of 1 Offer Share for every 2 existing ordinary shares of RM1.00 each held in MPHB as at 5.00 p.m. on 29 May 2013 (“Entitled Shareholders”), at the offer price of RM1.00 per Offer Share (“Offer for Sale”)
Despatch Date 31/05/2013
Date for commencement of trading of the rights 30/05/2013
Date for despatch of abridged prospectus and subscription forms 31/05/2013
Date for cessation of trading of the rights 06/06/2013
Date for announcement of final subscription result and basis of allotment of excess Rights Securities 17/06/2013
Listing date of the Rights Securities 25/06/2013
Last date and time for Date Time
Sale of provisional allotment of rights 05/06/2013
at
05:00:00 PM
Transfer of provisional allotment of rights 10/06/2013
at
04:00:00 PM
Acceptance and payment 13/06/2013
at
05:00:00 PM
Excess share application and payment 13/06/2013
at
05:00:00 PM