There is a rumour running in the market that Magnum (3735) is about to be taken private or likely be sold by its parent MPHB (3859) at a selling price of RM3.80. Magnum and MPHB ran up yesterday and is expected to continue to run today. Magnum also recently announced that the company wants to raise RM800mil cash to provide the group and its subsidiaries with additional funds to finance their working capital and for acquisitions.
Based on technical, MPHB looks the better bet. On a fundamental basis, MPHB would also be the likely winner as 'the sale' could boost the coffers of MPHB. MPHB could potentially return the excess cash to shareholders via a special dividend :). Since both analysis 'appears' to favour MPHB, it could be better to look into MPHB. For those who prefer to leverage, pls look into MPHB-WB.
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