MPHB plan to own 100% of Magnum
Filed Under (Business News) by Webmaster on 10-02-2011
Tagged Under : Magnum 4D, MPHB, Multi-Purpose Holdings Bhd
Multi-Purpose Holdings Bhd (MPHB) has signed a memorandum of understanding (MOU) with certain members of the management of Magnum Holdings Sdn Bhd to acquire the remaining 49 per cent stake in Magnum not already owned by the company.
Under the MOU, MPHB proposed to acquire RM674.6 million nominal value redeemable convertible loan stock class C of Magnum for about RM1.64 billion to be satisfied via the issuance of new ordinary shares of RM1 each in MPHB or cash.
In an announcement to Bursa Malaysia today, the company said it has also entered into a MOU with Asia 4D Holdings Ltd, a unit of CVC Capital Partners Asia Pacific III, L.P., and CVC Capital Partners Asia Pacific III Parallel Fund-A, L.P., and Asia 4D Co Ltd, a unit of Asia 4D Holdings.
“The parties have agreed to negotiate with the aim of formalising and entering into the definitive agreement within 30 days from the date of the MOU,” MPHB said.
The company said the proposed acquisition would enable MPHB to have full ownership in Magnum, thus making gaming the core business of the MPHB group.
“It would further improve and strengthen the future profitability and cash flow position of the MPHB group via the higher share of Magnum’s earnings and cash flows,” it said.
