Magnum's U Mobile is a diamond in the rough: AllianceDBS

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KUALA LUMPUR (Sept 12): Magnum has a hidden gem in the form of its 6% stake in Malaysian cellphone-network operator U Mobile, AllianceDBS Research says. 

If the lottery group holds a public offering of its U Mobile shares by 2020, it could unlock the value of the investment and enhance capital management, the brokerage says. 

AllianceDBS expects that such a disposal would yield substantial cash proceeds, which Magnum would likely use to reward shareholders via special dividend. Maintaining Magnum at buy, AllianceDBS raises its target to RM3.35 from RM3.15.