Magnum to be taken private at RM3.45 a share

PETALING JAYA: Multi-Purpose Holdings Bhd (MPHB) has proposed to form a special purpose vehicle (SPV) with private equity fund CVC Asia Pacific Ltd to take Magnum Corp Bhd private at RM3.45 per share.

Magnum said in a statement to Bursa Malaysia that it had received a letter from its major shareholder MPHB proposing the privatisation of the gaming company via a selective capital reduction and repayment exercise.

The deal is estimated to be worth RM2.25bil, given that MPHB intends to waive its entitlement to the capital repayment of RM3.45 a share.

MPHB holds a 55.5% stake, or 793.78 million shares, in Magnum, which contributes over 70% to the group's pre-tax profit.

The statement said the proposal would allow shareholders to realise their investment in Magnum, which generated more than RM300mil in cash annually, at a premium.

The offer price represents a 13.5% premium over Magnum's last traded price before the counter's suspension from trading on Friday.

At RM3.45, the numbers forecast operator is valued at a price/earnings ratio of 21.5 times and book value of 4.2 times based on its balance sheet as of Sept 30.

Yesterday, MPHB signed a heads of agreement with Hong Kong-based CVC on the proposed privatisation.

MPHB and CVC will hold 51% and 49% equity interest respectively in the SPV that will own Magnum.

The proposed privatisation will be funded with both interest-free loans provided by the SPV and borrowings by Magnum.

On completion of the deal, Magnum will become a wholly owned subsidiary of MPHB and will be delisted from Bursa.

MPHB will then dispose of Magnum (by then its subsidiary) to the SPV for a consideration translating to RM3.45 per share.

Being the promoter of the proposal, MPHB will abstain from voting on the resolution for the exercise.

Magnum chairman and major MPHB shareholder Datuk Surin Upatkoon and executive director Lim Teong Leong, who also has shares in MPHB and Magnum, will also refrain from voting on the proposal.

The proposal is expected to be completed by the second quarter next year.

URL: http://biz.thestar.com.my/news/story.asp?f...37&sec=business

so today everyone getting pump up ? hahahahaaa

Don't get so excited. Nikkei open in red, and DJ not so convincing

those who are easily getting climax....i think u better look out for the anti....hahaha it might just come along !

Today's market is mostly in mixed mood.

Do you think KLCI will make us proud by closing +10 pts?

Who's queueing for HapSeng? what price

i dun think so...

proton will b under selling pressure..it is indexed link hehe

oil prices up again...

merely, 2-3pts can b happy liao

long way more to go bro,...lets talk about opening and surviving thru the day !

@mtsen

thanks for the first hand news upsdate on DIGI & TDC

yah, i heard the news from FM too, looks like our govrnenment is holding back the 3G license huh...

so expecting DIGI shares price to decline today

LKY said is quite true...there r not suppose to sell it when bidding 3G licences....for merely RM50m iniitally per piece..u sell for 600m+ is a better than scheme cepat kaya.....

no rush la, what if there is another round of correction on tomorrow or next week

my fair price for HAP SENG is 2.8x - 2.9x

If I'm Telenor's management, I will hentam Digi's share and pull out....at the same time short play till TDC's also go down to drain

Australia is in red. Damn.

Maybe go down to near RM2

This post has been edited by jasontoh: Nov 21 2007, 09:04 AM

my brother told me gorverment hold back WiMAX spectrum for certian company.... if not mistaken grren packet and also timedotcom.

i think should not related to digi and 3g license...

awww today's biggest loser are DIGI & PROTON

poor thing, bad news hit them kao kao

what happen to gamuda ah?? any news for gamuda??

keep dropping..... fews day already.

later pm came out and said "the deal is still on"

for those who follow proton....recently a big hoohaa on MOI wif vw turns out to b chow piew by insiders....

for those who remember where in the last few mths...a same technique being deployed by insider also wat....said no deall..share drop kao kao..then pm came out..deal still on

price adjusting

analyst reported that fair price for GAMUDA is 4 bucks and below

but they gave a TP of 6.xx for GAMUDA

i'll hold mine, keeping for mid to long term investment