Wednesday, 15 February 2012

Mulpha Intl to realise RM57.3m one-off gain from sale of HK firm

KUALA LUMPUR (Feb 15): MULPHA INTERNATIONAL BHD [] expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said on Wednesday its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

At HK$1.90 a share, this is a premium of 13.1% over the closing price of Manta on the last practicable date of HK$1.68 and it higher than the 52-week trading range of between HK$1.15 and HK$1.89.

Manta’s core activities are rental and trading of tower cranes, CONSTRUCTION [] equipment and provision of maintenance services for tower cranes in Hong Kong, Macau, Singapore and Vietnam.

Mulpha said its carrying value of the investment in Manta as at Dec 31, 2011 was about RM48.24 million.

“The proposed disposal is in line with Mulpha International group’s strategy to dispose of its non-core assets and focus on its core business in property development and investment and property related business.

“The proposed disposal enable Mulpha International to realise its investment in Manta at an attractive valuation, the proceeds of which may be redeployed to the repayment of bank borrowings and/or working capital requirements of the Mulpha International group,” it said.

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