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!