MPHB wants to exit its insurance business. It seeks BNM approval to dispose its remaining stake to MPI Generali (italian). BNM previously reject. Million dollar question is if BNM will approve what it rejected few years ago? Maybe. Maybe they think at this climate it is in the best interest of the country to have full foreign ownership ; afterall its just a small general insurance (non-life insurer). Not so sensitive compared to other much bigger life insurers. its totally up to BNM's discretion under the FSA.
Already stated in 3qtr 2020 financial report that the put option expired . It means Generali lost the right to demand MPHB to buy back the 49% sold 5 -6 years ago. Therefore, the sales for another up to 51% will go thru just a matter of price ?
Per financial report 31/12/20, MPHB net asset per share increase from $1.90 to $2.60 . This is due to the lapse of put option liability of $400+ million which is now an asset. Cash + investment securities has gone sky high of over $1 bil. Solid balance sheet . Hopefully the sales for remaining 51% of the insurance business can be completed soon and that the Board will reward the patience of the shareholders with handsome special dividend.
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Endgame
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Posted by Endgame > 2020-08-05 09:48 | Report Abuse
MPHB Capital decides to exit insurance business, seeks BNM nod to start talks with Generali