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?