KUALA LUMPUR (March 5): MPHB Capital Bhd — which has received an unusual market activity (UMA) query from Bursa Malaysia — said it is still in the midst of negotiating the sale of its stake in MPI Generali.
In a reply to the UMA query, the group, whose share price shot up 29.6% yesterday, said that last year it informed the stock exchange regulator over the proposals to dispose of its stake in MPI Generali to Generali Asia NV.
On Sept 29, 2020, it announced that Bank Negara Malaysia had no objection to the talks between the group's wholly-owned subsidiary Multi-Purpose Capital Holdings Bhd (MPCHB) and Generali Asia on the divestment of its 51% stake in MPI Generali.
Generali Asia is a subsidiary of Italian Generali Group, which acquired a 49% stake in MPI Generali from MPHB Capital in May 2015.
"MPCHB is currently still in the midst of negotiation with Generali Asia on the potential disposal and the parties have not come to an agreement nor have finalised any terms on the potential disposal," said the company in a bourse filing today.
The group said it is not aware of any other cause of its unusual share movements after making due enquiries with its directors and major shareholders.
"The company will make the necessary announcement to Bursa Securities of any material information in compliance with Paragraph 9.03 of the LR (Listing Requirements)," it said,
The group was queried by Bursa yesterday after its share price hit limit up to close 32 sen or 29.63% higher at RM1.40. This gave the company a market capitalisation of RM1 billion, after some 3.72 million shares were traded.
At noon break today, MPHB Capital settled three sen or 2.14% lower at RM1.37, valuing the group at RM979.55 million.