Showing posts with label Magnum. Show all posts
Magnum to sell stake in U Mobile
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
Multi-Purpose Holdings Bhd to be renamed as Magnum Bhd on 3-July
MULTI-Purpose Holdings Bhd (MPHB), to be renamed Magnum Bhd, is looking to operate and manage the lottery business in other Asian countries in order to diversify its income stream.
A company official told Business Times that MPHB plans to operate the lottery businesses for those governments and the private sector that have the licences and operating assets but need experts to run them.
“The company would like to go overseas but it is not easy obtaining licences for lottery operations.
It makes more business sense for MPHB to manage for others and focus on what it is good at,” said the official. MPHB is sitting on a huge cash pile of RM817.9 million as of March 31 2013, compared with RM631.5 million a year ago.
A company official told Business Times that MPHB plans to operate the lottery businesses for those governments and the private sector that have the licences and operating assets but need experts to run them.
“The company would like to go overseas but it is not easy obtaining licences for lottery operations.
It makes more business sense for MPHB to manage for others and focus on what it is good at,” said the official. MPHB is sitting on a huge cash pile of RM817.9 million as of March 31 2013, compared with RM631.5 million a year ago.
The cash pile means the company, which has low gearing of 0.5 times, has more than enough money to expand and increase its dividends.
MPHB plans to pay dividends quarterly and has declared a dividend policy that pays at least 80 per cent of its net profit from gaming.
“They are looking at minimum 80 per cent. The plan is to pay more than that. The company is bullish on the gaming sector and expects a major improvement in earnings,” the source added.
For fiscal year 2012, the gaming division, led by Magnum Corp Sdn Bhd, achieved a pre-tax profit of RM148.39 million, which was 49.78 per cent higher than the RM99.07 million recorded previously.
Magnum, with 485 outlets, is Malaysia’s leading lottery operator with a 40 per cent market share.
MPHB recorded a net profit of RM153.9 million for the first quarter ended March 31 2013, compared with RM85.3 million in the same period a year ago. Revenue for the period was RM920.2 million against RM905.8 million previously.
Magnum contributed more than 80 per cent to the group’s net profit and revenue.
The official said MPHB is expecting 95 per cent of its net profit and revenue to come from gaming this year, and the rest from quoted investments and its holding in U-Mobile Sdn Bhd, which has a 3G licence.
Meanwhile, MPHB received the Registrar of Companies’ nod last Friday to change its name to Magnum Bhd. The new name, which will take effect on Wednesday, reflects its core business of operating and managing number forecast betting in Malaysia.
MPHB, set up in 1975, announced last year it planned to demerge its gaming and non-gaming assets, which includes general insurance, hotel and property.
The gaming business, including quoted investments and its holding in U-Mobile, is parked under MPHB while the non-gaming business is placed under MPHB Capital Bhd, which was listed last Friday.
Read more: Multi-Purpose eyes Asia boost to income http://www.btimes.com.my/Current_News/BTIMES/articles/20130630232958/Article/index_html#ixzz2XkouJcpI
