NUMBER forecast operator Magnum Bhd plans to hive off its stake in U Mobile Sdn Bhd to focus on its gaming business, persons with first-hand knowledge of the matter said.
Magnum, formerly, Multi-Purpose Holdings Bhd, has a between six and seven per cent stake in U Mobile, a 3G (third generation) mobile operator.
According to sources, Magnum aims to dispose of its stake in the company after its initial public offering on Bursa Malaysia this year. The controlling shareholder of U Mobile is Tan Sri Vincent Tan Chee Yioun, founder of Berjaya Group. U Mobile is one of three companies privately held by Tan earmarked for listing this year. Tan also plans to list the chain of 7-Eleven convenience stores under a company called 7-Eleven Malaysia Bhd and MOL Global Bhd, which has shares in Internet giant Facebook.
Tan has said U Mobile may be worth RM4 billion or RM5 billion when it is listed. This means Magnum's six to seven per cent stake in U Mobile after the company's IPO would be worth anywhere between RM280 million and RM500 million. It is unclear to whom Magnum will sell the shares to.
In 2009, Japan's NTT DoCoMo and South Korea's KT Corp sold their 33 per cent stake in U Mobile to Tan for about US$200 million (RM636 million) to avoid losses on their investment. DoCoMo and KT Corp bought into U Mobile in April 2008. They paid US$100 million each for their respective 16.5 per cent equity stake.
"Magnum wants to focus on growing its gaming business in Malaysia and undertake new ventures, such as operating lottery business in Asia. The money from the disposal of its stake in U Mobile will be used for working capital," the source said. Magnum operates 485 outlets in Malaysia. The company owns eight outlets and the rest are operated under a franchise scheme.
For fiscal year 2012, Magnum netted RM274.2 million in profits on revenues of RM3.09 billion. Contribution from its quoted investments and its holding in U Mobile was less than three per cent. Read more: Magnum to sell stake in U Mobile - The Business Times
According to sources, Magnum aims to dispose of its stake in the company after its initial public offering on Bursa Malaysia this year. The controlling shareholder of U Mobile is Tan Sri Vincent Tan Chee Yioun, founder of Berjaya Group. U Mobile is one of three companies privately held by Tan earmarked for listing this year. Tan also plans to list the chain of 7-Eleven convenience stores under a company called 7-Eleven Malaysia Bhd and MOL Global Bhd, which has shares in Internet giant Facebook.
Tan has said U Mobile may be worth RM4 billion or RM5 billion when it is listed. This means Magnum's six to seven per cent stake in U Mobile after the company's IPO would be worth anywhere between RM280 million and RM500 million. It is unclear to whom Magnum will sell the shares to.
In 2009, Japan's NTT DoCoMo and South Korea's KT Corp sold their 33 per cent stake in U Mobile to Tan for about US$200 million (RM636 million) to avoid losses on their investment. DoCoMo and KT Corp bought into U Mobile in April 2008. They paid US$100 million each for their respective 16.5 per cent equity stake.
"Magnum wants to focus on growing its gaming business in Malaysia and undertake new ventures, such as operating lottery business in Asia. The money from the disposal of its stake in U Mobile will be used for working capital," the source said. Magnum operates 485 outlets in Malaysia. The company owns eight outlets and the rest are operated under a franchise scheme.
For fiscal year 2012, Magnum netted RM274.2 million in profits on revenues of RM3.09 billion. Contribution from its quoted investments and its holding in U Mobile was less than three per cent. Read more: Magnum to sell stake in U Mobile - The Business Times
