Update on MIDF

My Dearest Moo Moo Cow,

Remember the series of blog postings on MIDF? ( Click here )

Well to make it short, MIDF has always denied the rumors published in our fantastic financial news.

• We refer to the query from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 19 March 2007 in relation to the above article appearing in The Star (Bizweek, page BW4) on Saturday, 17 March 2007 ("Article").
  
  We wish to inform that MIDF is not in a position to make any comments as MIDF is not involved in any manner on what has been reported in the Article. At the same time, MIDF has not been advised by its shareholders or any other parties of any corporate exercise in relation to the Article.
  
  As requested by Bursa Securities, we will make enquiry with Permodalan Nasional Berhad ("PNB") in respect of the above matter and will make the necessary announcement upon receiving a response from PNB.
  
  This announcement is dated 20 March 2007.

Posted on today's Business Times. ( here )

• PNB: We're not buying out MIDF
  By Kamarul Yunus
  ahmadk@nstp.com.my
  
  April 11 2007
  
  PERMODALAN Nasional Bhd (PNB) is not buying out investment bank MIDF Bhd, PNB's chief executive officer Tan Sri Hamad Kama Piah Che Othman says.
  
  He said MIDF is already under PNB's stable of companies.
  
  Neither does PNB have any immediate plan to increase its existing stake in MIDF.
  
  Hamad Kama Piah was responding to recent reports saying that PNB was planning to buy out MIDF or raise its stake in the investment bank from the present 70 per cent it holds.
  
  PNB was said to be planning a RM600 million buyout bid for MIDF, paying about RM2 per share.

See the last sentence...

• PNB was said to be planning a RM600 million buyout bid for MIDF, paying about RM2 per share.

So who exactly were spreading these rumors out?

Why did our financial newspapers carried such un-confirmed stories?

Shouldn't the stories have CREDIBLE SOURCES?

How my dearest Moo Moo Cow? Don't you find it all so disgusting?

Sigh!

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MIDF

Previously on MIDF: More on MIDF

As expected, here's the reply.

• We refer to the query from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 19 March 2007 in relation to the above article appearing in The Star (Bizweek, page BW4) on Saturday, 17 March 2007 ("Article").
  
  We wish to inform that MIDF is not in a position to make any comments as MIDF is not involved in any manner on what has been reported in the Article. At the same time, MIDF has not been advised by its shareholders or any other parties of any corporate exercise in relation to the Article.
  
  As requested by Bursa Securities, we will make enquiry with Permodalan Nasional Berhad ("PNB") in respect of the above matter and will make the necessary announcement upon receiving a response from PNB.
  
  This announcement is dated 20 March 2007.
  
  

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More on MIDF

My dearest Moo Moo Cow,

Your last updated posting on MIDF: Update on MIDF

• Previously: MIDF: Another Speculation
  
  Today MIDF replied to the querry:
  
  
  

  • We refer to the query from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 13 March 2007 in relation to the above article appearing in The New Straits Times (Business Times, page 40) on Tuesday, 13 March 2007 ("Article").
    
    We wish to inform that MIDF is not in a position to make any comments as MIDF is not involved in any manner on what has been reported in the Article. We also wish to inform that MIDF has not been advised by its shareholders or any other parties of any corporate exercise in relation to the Article.
    
    As requested by Bursa Securities, we will make enquiry with Permodalan Nasional Berhad ("PNB") in respect of the above matter and will make the necessary announcement upon receiving a response from PNB.
    
    This announcement is dated 14 March 2007.
  
  

  How????

Well, my dearest Moo Moo Cow, I am not sure if you realise that there's another article on MIDF. Yes, I wonder what's really happening here? Why is our financial news so keen on selling the idea of parties being interested in buying MIDF? Why?

I have no idea, my dearest Moo Moo Cow but do have a read. The bold green italics are stuff I do not understand.

• KFH in talks to buy MIDF stake?
  Saturday March 17, 2007
  
  KFH in talks to buy MIDF stake?
  
  By JOSE BARROCK
  
  KUWAIT Finance House (KFH) is believed to have commenced base-level negotiations with state-controlled Permodalan Nasional Bhd (PNB) on the possibility of KFH taking equity in investment banking outfit Malaysian Industrial Development Finance Bhd (MIDF), people familiar with the matter tell BizWeek. (which people? This is exactly like sources, no? )
  
  PNB is MIDF's largest shareholder. It has a direct 20.3% stake, while Amanah Saham Bumiputra, a unit trust fund it manages, owns 49.2%.
  
  At press time, it is not clear how much KFH may fork out as the negotiations are still at an infancy stage, with details on pricing hard to come by. It is likely that the deal may only take place after MIDF has been taken private. (now, my dearest Moo Moo Cow, if they are NOT CLEAR, how can they run this story? - err.. "macam-macam boleh" (translated: anyhow also can) issit?)
  
  There were news reports last week stating that PNB was considering the privatisation of MIDF at RM2 a share. This would mean PNB spending about RM600mil to undertake the exercise. (wasn't the story denied? why are they still continuing on it? why?)
  
  When queried by Bursa Malaysia on the reports, MIDF said it was not in any position to comment, and it had not been advised on any such dealings by its shareholders. ( see? )
  
  Industry sources say PNB may sell some shares in MIDF once the privatisation exercise is concluded and rope in KFH as a shareholder. (ahh.. finally! here comes the Source!)
  
  This move to acquire a stake in MIDF marks the second attempt by the Middle East-based banking group to strengthen its footing in the domestic banking sector, something KFH has been looking at since last year.
  
  The first try was via a plan to acquire equity in Rashid Hussain Bhd and its unit, RHB Capital Bhd (which controls RHB Bank Bhd). However, the Employees Provident Fund has won the bidding contest.
  
  To date, KFH has set up several branches offering Islamic banking facilities, but organic growth may be too slow a method for the bank to make an actual impact.
  
  “The possibilities are aplenty between the two (PNB and KFH). MIDF is actually a decent company, but it has largely been overlooked. MIDF has its core business in investment banking, asset management, and also development financing,” says an industry source. ( Look who's talking? An industry source! Oh, less we forget, it's just possibilites!)
  
  “It is possible that KFH may team up with MIDF and even initiate Islamic investment banking activities. PNB, after all already has a commercial bank, Maybank (Malayan Banking Bhd), and a merchant banker in Aseambankers (Bhd). So there are a number of possibilities with MIDF, which will also avoid duplication of facilities being offered.”
  
  For the financial year ended December 2006, MIDF posted a net profit of RM122.8mil on the back of RM557.6mil in sales. The company’s net profit surged by more than 100% from 2005, largely due to the sale of an associate company for RM43.6mil and the surrendering of two discount house licences for RM70mil.

How my dearest Moo Moo Cow?

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Update on MIDF

Previously: MIDF: Another Speculation

Today MIDF replied to the querry:

• We refer to the query from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 13 March 2007 in relation to the above article appearing in The New Straits Times (Business Times, page 40) on Tuesday, 13 March 2007 ("Article").
  
  We wish to inform that MIDF is not in a position to make any comments as MIDF is not involved in any manner on what has been reported in the Article. We also wish to inform that MIDF has not been advised by its shareholders or any other parties of any corporate exercise in relation to the Article.
  
  As requested by Bursa Securities, we will make enquiry with Permodalan Nasional Berhad ("PNB") in respect of the above matter and will make the necessary announcement upon receiving a response from PNB.
  
  This announcement is dated 14 March 2007.

How????

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MIDF: Another Speculation

Amazing.

Are newsmedia created so that parties could publish and distribute their speculations freely?

Oh, I wonder.. if anyone do profit from these speculations.

• PNB plans RM600m buyout bid for MIDF
  Fund manager Permodalan Nasional may pay about RM2 per share for the remaining shares it does not hold in Malaysian Industrial Development Finance

Key word: May pay.

Anyway, this is what's printed in the news.

You be the judge. I have added some comments in blue italic.

• PNB plans RM600m buyout bid for MIDF
  
  March 13 2007
  
  PERMODALAN Nasional Bhd (PNB), a state-run fund manager, plans to make a RM600 million buyout bid for Malaysian Industrial Development Finance Bhd (MIDF), an investment bank, sources said. (Ah... the sources strikes yet again!)
  PNB may pay about RM2 per share or some RM600 million for the remaining shares it does not hold in MIDF.
  
  The fund manager and a unit trust fund it manages hold a collective 68.5 per cent of MIDF, a mid-sized investment bank, its 2005 annual report shows.
  
  The stock jumped 11 per cent to close at RM1.57 yesterday, its highest in three years. PNB officials could not be reached for comment. ( Hmm... who leaked the news out?)
  
  "It's possible. PNB already has Maybank and Aseambankers. I won't be surprised," says OSK Investment Bank's Chan Ken Yew. ( Nice to actually see some names mentioned. At least we know who said what. )
  
  MIDF shares have been languishing at its current level as investors prefer bigger rivals like Bumiputra-Commerce Holdings Bhd and Malayan Banking Bhd.
  
  PNB also controls Maybank, the country's biggest banking group.
  
  MIDF's stock is trading at a 25 per cent discount to its net asset per share of RM2.08 as at December 31 2006.
  
  MIDF more than doubled its net profit for 2006, mainly due to the sale of assets.
  
  It made a net profit of RM122.9 million while revenue was flat at some RM558 million last year. ( how much is PNB offering? 600Million? For a company making rm122.9 per year? Errr... how? Good deal or what? )
  
  Its profits were higher as it sold an associate company for a gain of RM44 million, RM70 million proceeds from giving up two discount house licences and a higher revenue of RM13.5 million from the asset management division. (ah, the profits were higher due to disposal of an associate company. So this could be a one-off gain)
  
  MIDF started its business 47 years ago as a development finance institution, helping to finance small- and medium-sized enterprises (SMEs).
  
  Today, it is a much bigger firm offering services in four core areas, namely investment banking (IB), development finance, asset management and industrial property.
  
  In February, MIDF managing director Mohd Najib Abdullah said that he expects the IB business to continue being the largest contributor to the group's profit.
  
  It recently won a mandate from the Government to give out RM750 million in loans to help companies automate their processes and also to develop the automotive industry.
  
  The loan schemes are to encourage companies to modernise and adopt automation for their manufacturing processes locally and for the automotive industry to encourage the making of components and spare parts.

How my dear old Brown Cow?

Oh, isn't it nice to see our newspaper being used as a wonderful tool for market punters to punt in the stock market.

Life is simply wonderful isn't it?

Cheers!

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