According to the sources, the joint bid by MPC and Amanah Raya is one of the three that Khazanah is considering.
MPC’s interest in Pos Malaysia would probably be a surprise to the market. The name has never popped up in the speculation that has started since Prime Minister Datuk Sri Najib Razak, who is also chairman of Khazanah, announced the divestment plan in March, 2010.
The emergence of MPC may raise eyebrows, considering that it has been a loss-making concern. Moreover, it is relatively small and does not appear to have deep pockets.
Based on last Friday’s closing of RM3.23, the chunk of some 173 million Pos Malaysia shares held by Khazanah is valued at about RM558.8 million.
MPC, on the other hand, has a market capitalisation of RM116.5 million based on last Friday’s closing price of 40.5 sen.
Tan Sri Syed Mokhtar is another bidder for the controlling shareholding of the postal company. The tycoon is said to have the highest bidding price of almost RM1 billion via DRB-Hicom Bhd.
Nonetheless, a source close to the deal said the proposal by MPC and Amanah Raya seemed to be the “outstanding” one on the table, in terms of enhancing the shareholder value of Pos Malaysia, although the partnership’s offer price is lower than Syed Mokhtar’s bid.
However, as at press time, details of the proposal were not known. “Amanah Raya and MPC could be the black horse in the race,” said the source.
Unlike what had been speculated earlier, it is believed that no foreign postal group has put in a bid for the shareholding in Pos Malaysia. It was earlier rumoured that several international postal groups, such as Deutsche Post and DHL Express, were keen on the stake.
It is believed MPC and Amanah would make its presentation to the vendor early this week, tomorrow
Sources said MPC was roped in because of the company’s major shareholder cum CEO, Datuk Bill Ch’ng, who is believed to have the financial muscle and entrepreneurial skill.
Ch’ng may not be a common name in the local corporate scene, but he is rather a well-known tycoon in Hong Kong, where he owns many prime properties. He also has vast experience in doing business in mainland China.
Ch’ng’s investment vehicle Top Lander Offshore Inc controls 61.21% of MPC, whose most recognisable asset is Wisma MPL in Jalan Raja Chulan in downtown Kuala Lumpur.
The company has a large tract of land in Iskandar Malaysia, Johor, measuring 638 acres, which is being developed into the Lakehill Resort City and Asia-Pacific Trade and Expo City projects.
For the six months ended Dec 31, 2010, MPC’s net loss widened to RM9.22 million from RM5.89 million a year ago. Revenue for the period came in at RM6.15 million versus RM5.95 million.
The company recorded a net profit of RM44.8 million for FY10 ended June 30. The hefty profit was boosted by the revaluation of Wisma MPL that resulted in a surplus of RM60 million.
Currently, MPL is relying on rental income from Wisma MPL. The company is banking on its projects in Iskandar to be the key earnings growth driver in the future.
Cash rich Pos Malaysia last Friday declared a hefty dividend per share of 17.5 sen. As at Dec 31, 2010, the company was sitting on a cash pile of RM267 million, which translated into net cash per share of nearly 50 sen.
Following the postage hike last year, Pos Malaysia recorded a revenue of RM1.01 billion for FY10 ended Dec 31. It posted a net profit of RM67.11 million, down from RM75.42 million.
The decline in profitability was due mainly to a RM47.4 million one-off provisions made for its Transmile stake (RM25.1 million) and an impairment loss (RM22.3 million) for its postal counter system.
Adding these one-off items back, an analyst estimates Pos Malaysia would have posted a 51.8% growth in net profit to RM114.5 million. - by Kathy Fong of theedgemalaysia.com
No comments:
Post a Comment