Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>On the 3 June, port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, had made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%., and a price last cleared back in January 2018.</p>
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<p>The Offer is being done via a selective capital reduction and repayment (SCR) exercise. Seaport Terminal owns 51.76% of MMC.  </p>
<p>This deal looks to be ring-fenced by Mokhtar. The big question mark is on timing. </p>
<p>I looked at 10 SCRs over the past thirteen years, the analysis of which suggests this may be wrapped up around mid-late November. </p>
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<p>More below the fold.</p>
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On the 3 June, port operator and utility play MMC Corp Bhd (MMC MK) announced Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, had made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%., and a price last cleared back in January 2018.


The Offer is being done via a selective capital reduction and repayment (SCR) exercise. Seaport Terminal owns 51.76% of MMC.  
This deal looks to be ring-fenced by Mokhtar. The big question mark is on timing. 
I looked at 10 SCRs over the past thirteen years, the analysis of which suggests this may be wrapped up around mid-late November. 


More below the fold.


MMC Corp (MMC MK): Let's Talk About Timing

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> has <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, has made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%. </p>
<p>The Offer is being done via a selective capital reduction and repayment (SCR) exercise.</p>
<p>Seaport Terminal owns 51.76% of MMC.  </p>
<p>MMC primarily operates a number of ports in Malaysia, plus holds equity stakes in <a href="https://www.smartkarma.com/entities/malakoff-corp-bhd" target="_blank" data-smartkarma-citation="entities:404:1" rel="noopener">Malakoff Corp (MLK MK)</a> and <a href="https://www.smartkarma.com/entities/gas-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:14078:1" rel="noopener">Gas Malaysia (GMB MK)</a>.</p>
<p>The offer is valid until the 15 July, should MMC wish to proceed.</p>
<p>More below the fold.<iframe width="1" height="1" frameborder="0" scrolling="no"></iframe></p>
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MMC Corp Bhd (MMC MK) has announced Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, has made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%. 
The Offer is being done via a selective capital reduction and repayment (SCR) exercise.
Seaport Terminal owns 51.76% of MMC.  
MMC primarily operates a number of ports in Malaysia, plus holds equity stakes in Malakoff Corp (MLK MK) and Gas Malaysia (GMB MK).
The offer is valid until the 15 July, should MMC wish to proceed.
More below the fold.












MMC Corp (MMC MK): Privatisation Offer From Syed Mokhtar

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

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Infrastructure Analyst - Ports & Terminals, Drewry Maritime Financial Research

Victor Wai, CFA

Infrastructure Analyst - Ports & Terminals

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

<p><strong>Westports finds solace in gateway cargoes:</strong> Transhipment throughput losses continued to play out in the 3Q17 report card of Westports. Revenue contracted 6.4% y/y from MYR 449.9m to MYR 421.2m as volumes declined 14.1% y/y to 2.14 mteu in the quarter, largely driven by a 23.7% y/y tumble in transhipment boxes to 1.42 mteu. Westports’ shareholders are not mourning the transhipment volumes that moved to Singapore port as the quarterly profit due to them dinged just 0.1% from the year-ago results…</p>

Westports finds solace in gateway cargoes: Transhipment throughput losses continued to play out in the 3Q17 report card of Westports. Revenue contracted 6.4% y/y from MYR 449.9m to MYR 421.2m as volumes declined 14.1% y/y to 2.14 mteu in the quarter, largely driven by a 23.7% y/y tumble in transhipment boxes to 1.42 mteu. Westports’ shareholders are not mourning the transhipment volumes that moved to Singapore port as the quarterly profit due to them dinged just 0.1% from the year-ago results…

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

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Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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<p>§  <strong>The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.</strong></p>
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<p>§  <strong>Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.</strong></p>
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<p>§  <strong>Consensus estimates are expecting oil prices to stabilise and</strong>…</p>
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§  The SGX Maritime &amp; Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in tandem with the recovery of crude oil prices, which may be an indication that the sector could be bottoming out.
 
§  Despite the rally, the 18 constituents within the SGX MOE Index are trading at an average current price-to-book (PB) ratio of 0.7x, with 10 of them trading below their book values.
 
§  Consensus estimates are expecting oil prices to stabilise and…



SGX's MOE Sector Sustains 4Q16 Momentum into 2017

Malaysia

MMC Corporation Berhad is an investment holding company. The Company, through its subsidiaries and associated company, operates a container port, provides power generation, distributes natural gas, and provides engineering and construction services.

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MMC Corp Bhd (MMC MK)

MMC Corp (MMC MK): Let's Talk About Timing

As this is a Scheme, and this is Malaysia, I would target ~15% annualised or ~6.3% gross spread, therefore bid up to RM1.88/share. It does pay to...

David Blennerhassett

MMC Corp (MMC MK): Privatisation Offer From Syed Mokhtar

I think this is a done deal and would expect shares to trade tight to terms. Assuming a mid-October completion, this may well trade up to ~RM1.94...

David Blennerhassett

The Stocks to Own in ASEAN – Vol. 35

Since its inception, our FVMR ASEAN Strategy has generated a before-fee total return of 149% versus MSCI ASEAN’s 22%. Since the last rebalancing,...

A. Stotz Investment Research

Westports' Wobbly Earnings

Westports finds solace in gateway cargoes: Transhipment throughput losses continued to play out in the 3Q17 report card of Westports. Revenue...

Drewry Maritime Financial Research

SGX's MOE Sector Sustains 4Q16 Momentum into 2017

§ The SGX Maritime & Offshore Services (MOE) Index, a benchmark for the MOE Sector, has rebounded 19.7% from its trough on 1 Sep 2016 in...

Singapore Exchange Ltd (SGX)

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