Posted by TheContrarian > 2022-02-23 23:42 | Report Abuse

Damn, got it wrong. Total consideration for the insurance units to be purchased from MphbCap and Affin are around RM600 million.

Posted by Johnzhang > 2022-02-24 06:05 | Report Abuse

TheContrarian, total consideration is RM1.29 billion!

GENERALI SIGNS AGREEMENT IN MALAYSIA TO ACQUIRE MAJORITY STAKE IN AXA AFFIN JOINT VENTURES AND PLANS TO PURCHASE 100% OF MPI GENERALI
22 JUNE 2021 - 07:02

The transactions transform Generali’s activities in Malaysia to become the #2 P&C insurer in the country, in line with its strategy to strengthen its leadership position in high potential markets
Generali to increase its current 49% stake in MPI Generali Insurans Berhad to 100%
Generali to acquire a 70% stake in AXA Affin Life Insurance joint venture (49% from AXA and 21% from Affin) and approximately a 53% stake in AXA Affin General Insurance joint venture (49.99% from AXA and 3% from Affin and minorities)
AXA Affin General Insurance and MPI Generali to be merged following the acquisitions creating one of Malaysia’s leading general insurance operations, with Generali holding a 70% stake
Milan – Generali has signed an agreement in connection with the purchase of the majority of the shares held by AXA and Affin in the joint ventures, approximately 53% of AXA Affin General Insurance Berhad (49.99% from AXA and 3% from Affin and minorities) and AXA Affin Life Insurance Berhad (49% from AXA and 21% from Affin), respectively.
The Group also submitted an application to the local regulator in order to acquire the remaining shares of MPI Generali Insurans Berhad (MPI Generali) held by its Malaysian joint venture partner, Multi-Purpose Capital Holdings Berhad (MPHB Capital). The transactions are subject to the approval of the Malaysian Minister of Finance and the Central Bank of Malaysia.

The total consideration for the combined transactions is of RM 1,290 million (€ 262 million1) subject to closing adjustments.

Posted by Johnzhang > 2022-02-24 07:29 | Report Abuse

With the insurance unit being separated in the financial accounts, there is a bit more clarity on how much cash and liquid investment will MPHBcap possess post insurance sales..

Simple estimations from a layman like me as shown below :

Asset classified held for disposal $2,906942,000
Liabilities held for disposal ($1,703,465,000)
-----------------------------------------------------------------------
Nett $1,203,477,000

Less non-controlling interest ($646,158,000) ie Generali 49% portion
-------------------------------------------------------------------
Balance belong to MPHB $557,319,000

Plus disposal gain for the 51% sales $ 250,000,000
------------------------------------------------------------------------
(A) Total cash increase in MPHB coffer $807,000,000
=========================================

**Note : the disposal gain for the 49% in 2014 was $209 mil + adjustment of $20mil(?), Therefore i assigned est. disposal gain for the 51% at $250 mil.

Per account as at 31/12/2021, cash + liquid investment stands as below :

Receivable current (credit business) $128,000,000
Investment securities $289,000,000
cash $ 9,000,000
------------------------------------------------------------------------
(B) Total $426,000,000

To add (A) above $807,000,000
---------------------------------------------------------------------------
(A+B) Grand total $1,233,000,000

@715 mil shares = $1.72 per share !!! which is higher than MPHBcap share price of $1.36 .

Any professional accountant here can verify if my layman's calculation make sense ??

Posted by Teh Kieat Keoi > 2022-02-24 08:39 | Report Abuse

i think rm557,319,000 already included disposal gain rm250,000,000, no need repeat to plus up.

Posted by Johnzhang > 2022-02-24 09:36 | Report Abuse

Teh, pls share with us the rationale why you think so. To my understanding you can not book disposal gain until the transaction is concluded with payment received.

Posted by Teh Kieat Keoi > Feb 24, 2022 8:39 AM | Report Abuse

i think rm557,319,000 already included disposal gain rm250,000,000, no need repeat to plus up.

Posted by TheContrarian > 2022-02-24 10:35 | Report Abuse

@Johnzhang, I found out that out of the RM1.29 billion, around RM690 million goes to AXA, the balance around RM600 million to MphbCap and Affin.

Posted by TheContrarian > 2022-02-24 10:51 | Report Abuse

https://www.axa.com/en/press/press-releases/axa-to-sell-its-insurance-operations-in-malaysia

Posted by Johnzhang > 2022-02-24 11:35 | Report Abuse

@Contrarian, you are right. I looked at Axa/Affin as one unit.
Axa Affin General Insurance (AAGI) and Axa Affin Life Insurance (AALI) are about 50-50 owned by AXA and Affin respectively.
Assuming no other thing is involved, Affin may get about $275mil for divesting 20% stake in AAGI and AALI to Generali (Axa's $688 mil is for about 50% shareholding in AAGI and AALI).
Thus ,the theoretical consideration for MPI is $1,29 bil minus $688 mil minus $275 mil = $327 mil. This is lower than the 49% sold in a few years ago. Without further information , we are only guessing if Affin's portion is $275 mil. Affin's portion may be smaller then $275mil as they will be 30% owner of the enlarged/merged entity with Generali.

In any case, MPHBcap cash pile alone will be more than its present share price. No forgetting all the valuable landbank and property .

Hope to reap very good return in this share soon.

Posted by TheContrarian > 2022-02-24 15:13 | Report Abuse

@Johnzhang, Affin is only divesting 3% of AAGI and not 20% (together with 21% of AALI). I think the portion payable to Affin is much lower, estimated RM130 million by someone somewhere. This leaves around RM470 million for MphbCap but this figure could be based on 31/12/2020 balance sheet since the estimated consideration was announced in June 2021.

Posted by chkhooju > 2022-02-24 15:18 | Report Abuse

What is the fuss? Has the sale been approved by Bank Negara?

Posted by Johnzhang > 2022-02-24 17:01 | Report Abuse

TheContrarian, glad to see that you are on top of it. My memory is failing me .

Posted by Endgame > 2022-02-25 10:58 | Report Abuse

Wah...still talking..act only... hoot it

Posted by Goh123 > 2022-02-25 17:35 | Report Abuse

hoot. sell. hold...only

Posted by Goh123 > 2022-03-10 17:07 | Report Abuse

waiting under table for mof. hahahaha

Posted by Endgame > 2022-03-11 13:40 | Report Abuse

Soon, anytime from now

Posted by theong > 2022-03-16 18:51 | Report Abuse

Sure wish i can accumulate more

Posted by Goh123 > 2022-03-16 19:07 | Report Abuse

youwin. sell off la

Posted by Goh123 > 2022-03-18 19:04 | Report Abuse

i ord sell half ...for my holding...cant wait too long

Posted by Endgame > 2022-03-20 23:27 | Report Abuse

Ready to count down...

Posted by Goh123 > 2022-03-21 15:41 | Report Abuse

yes! count price going down

Posted by TheContrarian > 2022-03-23 18:53 | Report Abuse

How long have to wait?

Posted by Goh123 > 2022-03-23 18:56 | Report Abuse

thecontrarian. if u sell the price will up

Posted by Johnzhang > 2022-03-23 19:07 | Report Abuse

@TheContrarian, I hope Goh123 doesn’t mean you bring bad luck . Hahaha…

Posted by Goh123 > 7 minutes ago | Report Abuse

thecontrarian. if u sell the price will up

Posted by Endgame > 2022-03-23 19:19 | Report Abuse

Before Q3 or soon...

Posted by Goh123 > 2022-03-23 19:43 | Report Abuse

endgame. q4. just past...u means q3. will September 2022

Posted by Goh123 > 2022-03-23 19:44 | Report Abuse

no undertable mof will no giving to approve

Posted by Johnzhang > 2022-03-24 09:09 | Report Abuse

Goh123, you can be in trouble if someone report the statement you make . Just a friendly advice.

Posted by Goh123 > 13 hours ago | Report Abuse

no undertable mof will no giving to approve

Posted by Goh123 > 2022-03-24 20:13 | Report Abuse

noted thanks

Posted by Goh123 > 2022-03-29 21:31 | Report Abuse

today got some vol !

Posted by theong > 2022-04-02 11:27 | Report Abuse

Thing are looking more interested as April.

Posted by Goh123 > 2022-04-07 17:27 | Report Abuse

hahah fake break out

Posted by theong > 2022-04-12 09:44 | Report Abuse

Chart pattern look very promising.

Posted by Johnzhang > 2022-04-16 17:14 | Report Abuse

My gut feeling tell me that it will be successful.

Posted by chkhooju > 2022-04-16 17:32 | Report Abuse

Why would it take such a long time?

Posted by TheContrarian > 2022-04-16 19:23 | Report Abuse

It's a done deal, only pricing to be announced.

Posted by chkhooju > 2022-04-16 20:28 | Report Abuse

Can I take this as gospel truth?

Posted by TheContrarian > 2022-04-16 20:46 | Report Abuse

Pricing is subject to adjustment and there's the issue of what MPHBCap intends to do with the sale proceeds ...... how much to be paid out as special dividend and/or capital repayment, acquisition of any new business. It will either excite or disappoint the market.

Posted by Goh123 > 2022-04-17 11:45 | Report Abuse

ten month ord ..

Posted by Johnzhang > 2022-04-17 12:38 | Report Abuse

@TheContrarian, based on your observation what do you think the company will likely do with over a $1 billion of cash after the deal? Pls share your thought.

Posted by TheContrarian > 2022-04-17 14:12 | Report Abuse

@Johnzhang, I really don't know because I am not familiar with the people who control MPHBCap. I only bought into MPHBCap several months ago. My hope is of course for MPHBCap to distribute the proceeds as much as possible as special dividend/capital repayment. I believe market will respond positively to a big payout.

Posted by chkhooju > 2022-04-17 14:32 | Report Abuse

The Contradian has said his part. @Johnzhang, what's your take on this issue?

Posted by Johnzhang > 2022-04-17 15:43 | Report Abuse

@chkhooju, if you visit the chat history in this forum you will find my thoughts about it.

Posted by Endgame > 2022-04-27 15:53 | Report Abuse

Macam postponed already

Posted by TheContrarian > 2022-04-27 16:19 | Report Abuse

Postponed due to Russia invasion of Ukraine.

Posted by Endgame > 2022-05-05 16:15 | Report Abuse

Big boss still greedy to collect more, press small fish retailers give up

Posted by Goh123 > 2022-05-07 23:25 | Report Abuse

follow the announcement with affin bank

Posted by Goh123 > 2022-05-09 09:07 | Report Abuse

suspend?

Posted by speakup > 2022-05-09 09:09 | Report Abuse

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3257642

Posted by theong > 2022-05-09 09:16 | Report Abuse

Finally the news that we are waiting.

Posted by TheContrarian > 2022-05-09 09:30 | Report Abuse

Suspension for only one hour.