MBF may pay more special dividends in next two years (1236)

KUALA LUMPUR: MBF Holdings Bhd's
shareholders may see up to a total gross RM1 dividend declaration per
share in the next two years as the group intends to dispose of more
non-core businesses.
This is inclusive of the 40 sen franked
dividend that shareholders would be rewarded with from the proceeds of
RM623.4mil from the sale of MBF's subsidiary, MBF Cards (M) Sdn Bhd, to AMMB Holdings Bhd.
The
group intends to pay out the remaining proposed 60 sen per share in the
form of special dividends; dependent on the success of the sale of its
non-core assets. “It is our intention to distribute special dividends
whenever we sell off any assets,” MBF group chief executive officer Tan Sri Mogan Lourdenadin said.
MBF's
shares closed 11 sen higher to RM1.22 yesterday, off an intra-day high
of RM1.28 with more than 3.8 million shares exchanged.
Lourdenadin
said the company was going through a restructuring exercise via the
sale of non-core assets aimed at focusing on its core business.
“We
will be focusing on the company's core business, which is essentially
the Carpenter group, an international trading company,” he said. The
Carpenter group contributes about 80% in revenue to the MBF group.”
WR
Carpenter is a trading and manufacturing business in Papua New Guinea
(PNG), which includes motor distribution and dealership, coffee and tea
plantations, and the retailing of hardware products and household items.
In
Malaysia, Loudernadin said the group planned to focus on its printing
business and operations, and also venture into property development.
MBF
has a sizeable landbank of 3,450 acres in Kulim, of which about 30% is
up for sale. The remainder land will be prepared for a mixed
development, with works expected to start middle of next year. This
will be the first major property development for the company.
MBF intends to list its PNG entity Boroko Motors soon, and will offer up to 49% of its existing stake in the entity.
Lourdenadin also mentioned the group would be selling its property assets in the United States and Australia.
AMMB's acquisition of MBF's credit and charge card operations would include a 33.33%-owned associate company, Bonuskad Loyalty Sdn Bhd, which is involved in the customer loyalty scheme business.
MBF
shareholders had unanimously voted in favour of the proposed disposal
at the company's extraordinary general meeting yesterday