KUALA LUMPUR (April 10): Malayan United Industries Bhd (MUI) and Pan Malaysia Holdings Bhd jointly announced today an extension to finalise conditions precedent of a disposal of assets to investor Datuk Dr Yu Kuan Chon to May 11, 2015

This is the second extension for MUI, Pan Malaysia and Yu, following the expiry of the first extension tomorrow, on April 11.

To recap, MUI had on Dec 12 last year, announced that its subsidiaries — Acquiline Sdn Bhd, Loyal Design Sdn Bhd, Malayan United Management Sdn Bhd, MUI Media Ltd, MUI Property Services Sdn Bhd, Megawise Sdn Bhd — were disposing a 69.192% stake in Pan Malaysia to Yu for RM77.12 million, as part of its business strategy to reduce bank borrowings by divesting non-core assets.

Upon completion of the acquisition, Yu’s stake in Pan Malaysia will increase to 74.522%, from 5.33% currently.

MUI (fundamental: 0.95; valuation: 1.2) said it expects to nett a gain of RM40 million from the disposal.

Pan Malaysia (fundamental: 0.4; valuation: 0.3) operates a 200-room Corus Paradise Resort in Port Dickson, Negri Sembilan. It also owns a stockbroking company, PM Securities Sdn Bhd.

Both MUI and Pan Malaysia are controlled by billionaire tycoon Tan Sri Khoo Kay Peng, who is currently entangled in a bitter divorce battle with his wife Puan Sri Pauline Chai over assets worth £440 million.

MUI closed unchanged at 23.5 sen this evening, with 1.63 million shares traded, giving it a market capitalisation of RM689.15 million.

Meanwhile, Pan Malaysia ended its trade 1.75% higher at 29 sen today for a market capitalisation of RM269.37 million, with 4.29 million shares changing hands.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)