Tuesday, September 15, 2009

MPHB to buy U Mobile?

It is one of the announcements that puzzles me.

Why is MPHB (Multi-Purpose Holdings Bhd), which has stakes in Magnum4D, wants to buy U Mobile or venture into a mobile industry?

The company announced yesterday that, it has signed a put option deal with AmBank, to buy 41 per cent stake in U Mobile for RM280 million.

KT Freetel and NTT DoCoMo, last year, jointly bought 33 per cent stake in U Mobile for US$200 million (US$100 million each), they have expressed their interests to exit U Mobile recently.

In a Reuters report, it said, NTT DoCoMo is selling their entire 16.5 per cent stake to U Television for US$100 million.

A few things that don't add up, or was not revealed:

1. Who owns the 41 per cent stake MPHB is buying? or Who are the owners of the 41 per cent stake?

2. When NTT and KT Freetel is selling the 16.5 per cent stakes for US$100 million each, how in the world MPHB is able to buy 41 per cent stake (about 8 per cent more than what the two foreign companies owned) at a huge discount?

3. If MPHB is so keen to buy a stake in U Mobile, why not buy it directly and instead, entered into a put option agreement with AmBank?

Initially, i have much more questions in my mind... but i guess i was too hungry, so no more energy to think...

It's 10 plus now, better go hunting food.

8 Comments:

TOMMY said...

Buying direct from the market will usually require MPHB paying a premium for the U mobile stake. The put option will allow MPHB to gain entry into U mobile at a much lower price pegged to NTA. This is a good deal (put option) but I'm not sure if U mobile is making a profit since it's not listed and I can't view its financial statement.

thunder said...

my friend, mphb is targeting the mobile 4D gaming. can own the UMobile can enable them to control the company it system and enable interface with the gaming system.
this is something for future. not for layman to understand.

the price drop today because layman don't undertand....targetshare price after they understand =RM2.50

Anonymous said...

Hi, Thunder how u know MPHB will using Umobile as medium to enter mobile 4D ? Why ? Any reason ? Im still not understand why need to buy Umobile stake to do so. Thanks

Thean Eu said...

While any theory, including the mobile 4D gaming theory, sounds possible. While it feels it make sense for MPHB to get into the mobile space.

There's only one thing bugging me.

Who owns the 41 per cent stake, MPHB bought the stakes from who?

Reuters reported that NTT Docomo is selling its 16.5 per cent stake to U Television (highly likely linked to U Mobile or Vincent Tan) for US$100 million, there were also reports that KT Freetel sold its stakes for US$100 million.

So, if Reuters report is true, then Tan may have paid US$200 million to the Japs and Koreans.

IF,... IF...the 41 per cent stake MPHB is buying belongs to Tan ... Why would a smart businessman like Tan, which may have paid US$200 million to buy back the 33 per cent stake, wants to sell 41 per cent stake for only RM280 million?

So, IF the 41 per cent stake does not belong to Tan, whose is it then?

Thean Eu said...

Here's the article from Reuters:

Sept 15 (Reuters) - Japan’s NTT DoCoMo <9437.T> plans to sell its entire stake in Malaysian cell phone company U Mobile Sdn Bhd this month, due to a difference of opinion with other shareholders over management, the Nikkei business daily said.

DoCoMo plans to sell its holdings in the firm to U Mobile’s parent company for $100 million, which is the same amount at which it originally purchased the stake, the newspaper said without citing sources.

In 2008, DoCoMo and South Korea’s KT Freetel Co each took a 16.5 percent stake in U Mobile, for a combined 33 percent interest.

U Mobile entered the Malaysian cell phone market in spring 2008, providing 3G services to customers with technological assistance from DoCoMo and others. But, it has been unable to take market share away from larger service providers in the country and currently has a share of less than 1 percent, the Nikkei said.

DoCoMo will walk away from the tie-up with U Mobile due to a difference of opinion, according to a senior DoCoMo executive and KT Freetel is slated to follow suit, the newspaper reported.

An official announcement about DoCoMo’s withdrawal is expected as early as Tuesday, it added.

=====

CORRECTION on my earlier comments, paragraph 4, which states:

Reuters reported that NTT Docomo is selling its 16.5 per cent stake to U Television (highly likely linked to U Mobile or Vincent Tan) for US$100 million, there were also reports that KT Freetel sold its stakes for US$100 million.

It should be:
Reuters reported that NTT Docomo is selling its 16.5 per cent stake to U Television (highly likely linked to Vincent Tan) for US$100 million, there were also reports that KT Freetel is selling its stakes for US$100m as well.

Anonymous said...

http://biz.thestar.com.my/news/story.asp?file=/2009/9/18/business/4741133&sec=business

Perhaps, MPHB no plan to manage Umobile, but it want to be a larger investor, but it also know Umobile will find a strategic investor, so it just put a option...but why the price just RM280mil ?????

TOMMY said...

Thunder, 4D gaming via U Mobile? This don't make sense lah. Look at the other majority shareholder before making the comment. Vincent Tan (the owner of Toto and largest shareholder of U mobile) will never allow that to happen. Anyway, things have cleared up now. This arrangement is a friendly deal between Tan and Surin. MPHB is getting some kickbacks in the deal being its guarantor. With Surin's connection with Temasek, I'm not surprised if SingTel or Starhub will enter the fray. It's a 3D negotiation strategy and all will walk away smiling

Anonymous said...

read the Star Newspaper on Friday and Saturday for all the truths.... all the above are wrong assumptions

 

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