Had dinner with some analyst friends from banks. This topic about MUI disposing the profit making Corus Hyde Park pop out and coincidently one of the analysts just done an analysis on this.
Planned selling price: GBP200mil @ RM1 billion
This analyst friend says based on the facts gathered, MUI Group is currently servicing around RM850mil to RM900mil bank loan. And half of the loan(around RM450mil) is taken by Corus Hype Park. If this disposal is successful, then the RM1 billion cash will be left RM550mil. And of the balance of cash (RM550mil) is also expected to be used to pare down remaining bank loan in order to lower down the existing finance cost.
Special dividend maybe declared as rumored. It may likely that this special dividend declaration is to help senior khoo to pare down his existing high personal loan with a local bank.
Some cash also may likely need to be channelled into its existing which is bleeding badly (e.g. metrojaya, etc) or cash tight (e.g. Local Corus, etc)
After all these, not much cash should be left. The group is talking about lifestyle business. How good will be lifestyle biz in the next 3 to 5 years considering the Malaysian economic situation to allow consumers too spend on lifestyle. Can these lifestyle biz fill up the profit vacuum left by Corus Hyde Park?
So, the question, what will actually happen to stock price then? Will it be a sustaining price? Let’s wait and see.
Stock: [MUIIND]: MALAYAN UNITED INDUSTRIES BHD
2019-05-14 17:17 | Report Abuse
Had dinner with some analyst friends from banks. This topic about MUI disposing the profit making Corus Hyde Park pop out and coincidently one of the analysts just done an analysis on this.
Planned selling price: GBP200mil @ RM1 billion
This analyst friend says based on the facts gathered, MUI Group is currently servicing around RM850mil to RM900mil bank loan. And half of the loan(around RM450mil) is taken by Corus Hype Park. If this disposal is successful, then the RM1 billion cash will be left RM550mil. And of the balance of cash (RM550mil) is also expected to be used to pare down remaining bank loan in order to lower down the existing finance cost.
Special dividend maybe declared as rumored. It may likely that this special dividend declaration is to help senior khoo to pare down his existing high personal loan with a local bank.
Some cash also may likely need to be channelled into its existing which is bleeding badly (e.g. metrojaya, etc) or cash tight (e.g. Local Corus, etc)
After all these, not much cash should be left. The group is talking about lifestyle business. How good will be lifestyle biz in the next 3 to 5 years considering the Malaysian economic situation to allow consumers too spend on lifestyle. Can these lifestyle biz fill up the profit vacuum left by Corus Hyde Park?
So, the question, what will actually happen to stock price then? Will it be a sustaining price? Let’s wait and see.