LISTING'S CIRCULAR NO. L/Q : 68396 OF 2013Capital repayment exercise by way of reduction of the share premium account ofMagnum Berhad (formerly known as Multi-Purpose Holdings Berhad) (Magnum)pursuant to Sections 60 and 64 of the Companies Act, 1965 (Capital Repayment).Kindly be advised of the following :1) The above Company's securities will be traded and quoted "Ex - Repayment" as from : 2 August 2013 2) The last date of lodgement : 6 August 2013 3) Date Payable : 20 August 2013 Remarks :- The Capital Repayment will be implemented by way of a reduction ofthe share premium of Magnum under Sections 60 and 64 of the Companies Act,1965, whereby the amount of RM696,500,000.00 will be distributed to allentitled shareholders of Magnum in proportion to their shareholdings in Magnum.Shareholders of Magnum, whose names appear on the Record of Depositors ofMagnum as at 5.00 p.m. on Tuesday, 6 August 2013 (Entitlement Date) shall beentitled to receive a Capital Repayment of approximately RM0.4879 for eachordinary share of RM1.00 each in Magnum held as at the Entitlement Date. Thepayment for the Capital Repayment is expected to be made by 20 August 2013.The trading of Magnum shares on the Main Market of Bursa Malaysia SecuritiesBerhad will not be suspended for the purposes of the Capital Repayment. Theshareholders of Magnum are not required to take any action for the purposes ofthe Capital Repayment.Upon completion of the Capital Repayment, the share premium account of Magnumwill be reduced by an amount of RM696,500,000.00.MANAGER, SEC. MARKET
After everything settle down (demerged plan), Rating of Magnum will be same like BJTOTO, because this 2 company have a almost same market share 40 : 40, but BJTOTO margin is higher due to the BJTOTO major in Lotto Game, so anyhow both of this company will be same BETA later.
At Sept 2013, BJTOTO will be listed the Gaming Asset in SGX, then this is the time, most of the funds manager will move into Magnum with HOPE to get higher Dividend yield and BJTOTO recently also announced to purchase the Luxury Car distributor in Europe. Recall, Magnum was the one NFO with lower BETA and the main reason is Magnum parked under Holdings company and Holdings company involved with many types of business and cash flow of the company not able to distribute to the share holders (Bjtoto move to Holdings company and no more Pure NFO Players) and Magnum will be a main beneficially.
For those wish to have a stable dividend income and lower risk stock .. I think you may consider Magnum.
If you sell MAGNUM shares on 1-Aug-2013 : No Capital Repayment If you sell MAGNUM shares on 2-Aug-2013 : Receive Capital Repayment 2-Aug-2013 = EX-Date = MAGNUM shares re-adjusted downwards 48.8 sen
That means if the closing price on the 1st aug is RM4.00, then the price will drop to RM3.51 when open on 2nd aug? then the price will depend on the market force after that?
magnum is a good company to invest. it is a pure gaming company after the demerger and they commit to pay more dividend as there is no requirement to reserve cash. it is a cash cow company and if you hold it long enough, u will get a handsome return.
while MPHB Cap is a property and insurance company, they cant pay too much dividend, and they can only realise the value of their assets when they dispose their property. what if they never dispose the property? u will wait for a long long time~~
I dun think it can go to 4.50 prior 2-Aug-13, maybe not even 4.00. If you plan to make fast money, go to oil & gas counter like Muhibah. But if you buy Magnum, you will enjoy the dividend yield. Profit will not be affected becoz no matter good times or bad times, Chinese oso will bet for luck.
sharing is caring~~~ if you see those research house putting target price of less than RM4.00 after ex-date, that's because they forecast conservatively, and they don't know about how much dividend Magnum will give. Even Berjaya Sports Toto also price at above RM4.00, and that's give a dividend yield of around 6%. You think Magnum can give or not? even if after ex-capital repayment, it fall to RM3.40, the dividend yield will then become very attractive d....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
member41
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Posted by member41 > 2013-07-24 16:03 | Report Abuse
i used 1 lot = 1000