Indeed. At RM1 , very attractive as cash in hand already RM1. Yet to factor in the value of the landbank. Any corporate announcement will drive the stock price up. My strategy for MPHBCAP is reinvestment to increase the holding. Once hit my target price or opportunity from other stocks , will sell all.
Casi Management updated Bursa of 32,700 shares purchased on 21st Sept. On 21st Sept , 38700 shares transacted , closed at 1.43. Let's see any further announcement of share purchase in next few days.
It will be a tussle between the majorshareholder and minority shareholders. Depends who more eager. If minority holding firm , Surin will need to raise the price to increase the holding.
My view. Simple calculation. SU will receive about 13MM of dividend. If he can increase his hokding by 8MM to 9MM shares , will get to 270+MM shares. He will receive about RM110MM from capital repayment. If he can up his holding to above 350MM , with only 365MM in floatation , then above RM2 offer for privatation highly possible with MPHBCAP cash in hand. He will able to take the company private without any fund from his own pocket
Reference is made to the Company's announcements dated 18 May 2022, 20 May 2022, 27 July 2022, 29 July 2022, 19 August 2022 and 30 August 2022 (collectively "Earlier Announcements") and the circular to the shareholders of MPHB in relation to the Proposals dated 28 June 2022 (“Circular”).
Unless otherwise defined, all defined terms used in this announcement shall carry the same meanings as defined in the Earlier Announcements and Circular.
As advised by the Company’s solicitors and on behalf of the Board, AmInvestment Bank wishes to announce that the High Court had on 5 October 2022 granted the order confirming the Proposed Capital Reduction and Repayment. The sealed order will be extracted and an office copy of the order will be lodged with the Registrar of Companies for the Proposed Capital Reduction and Repayment to take effect pursuant to Section 116(6) of the Act.
The effective date of the Proposed Capital Reduction and Repayment will be announced in due course.
SU will receive 45sen x 266.15 mil share = $130 mil cash that he can use to buy more MPHB cap share from open market. Based on today’s closing price of $1.43, the ex capital repayment price is theoretically $1.03.
$130 mil cash can buy him 126 mil more shares at $1.03 and he is anxiously waiting for good buy .
Next interesting event is privatization . It is reasonable to think that SU will exploit the weak market condition in 2022/23 to make the move . I think a reasonable but unfair offer is $1.80 to $2.00 after capital repayment. Anything lower will see many unhappy investors rejecting it.
The stock price need to adjust down by 40 sen during ex date to reflect the capital repayment of 40 sen. At RM1.03 , will be a bargain as the case per share by it self already RM1 and yet to factor in the huge value of the land.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
prakman777
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Posted by prakman777 > 2022-09-26 12:18 | Report Abuse
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