It is selling its insurance business. Tune Money is one of the parties interested in MPHB Insurans Bhd.
Going by the current valuations, MPHB is not going to be valued at anything less than 2.1 times book value. Based on a book value of rm220 million, the sale should gross MPHB more than rm440 million. This works out to be 30 sen per share.
What might put a dent in MPHB Insurans’ valuation is that it will likely lose a portion of its non motor business due to Tune Ins acquiring OCA. This is because some 16% of non motor insurance comes from Airasia travellers.
MPHB is slowly turning into a dividend yield stock largely due to the number forecast business it wholly owns through Magnum Corp. The reason MPHB is lagging bhind its peer in valuation is due to its debt position of more than rm1 billion. The debt was incurred when it acquired the 49% stake in Magnum Corp in June 2011.
Although its debt increased with the acquisition Magnum, MPHB also has assets.
Going by the current valuations, MPHB is not going to be valued at anything less than 2.1 times book value. Based on a book value of rm220 million, the sale should gross MPHB more than rm440 million. This works out to be 30 sen per share.
What might put a dent in MPHB Insurans’ valuation is that it will likely lose a portion of its non motor business due to Tune Ins acquiring OCA. This is because some 16% of non motor insurance comes from Airasia travellers.
MPHB is slowly turning into a dividend yield stock largely due to the number forecast business it wholly owns through Magnum Corp. The reason MPHB is lagging bhind its peer in valuation is due to its debt position of more than rm1 billion. The debt was incurred when it acquired the 49% stake in Magnum Corp in June 2011.
Although its debt increased with the acquisition Magnum, MPHB also has assets.
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