RM0.170

Amidst the uncertainty in the stock market, investors may look into loan stocks trading at discount to take advantage of the fragile sentiment.  This is especially true when the loan stock is trading at less than half price of the underlying share.  With the major shareholder of Malayan United Industries Berhad (MUIND) Tan Sri Dato’ Khoo Kay Peng willing to underwrite all unsubscribed MUIND share at an indicative offer price of 30 sen in a proposed divestment of MUIND share by Pan Malaysian Industries Berhad (PMIND) to its shareholders, buying MUIND-LB (Class A2, 8-year Irredeemable Convertible Unsecured Loan Stock) trading at about half price should be a relatively safe bet.  If MUIND-LB is held until maturity, there is a potential of its holders recovering 15 sen in either cash or additional ICULS.  This means investors buying into MUIND-LB at its current price of 17 sen can possibly gain entry into the mother share at almost next to nothing. 

MUIND is a conglomerate with subsidiaries and associate companies involved in retailing, hotels, food & confectionery, financial services, properties and travel & tourism. The Group's operations and investments have expanded beyond Malaysia to the United Kingdom, Europe, United States of America and Asia Pacific. The MUI Group today has assets of RM2.9 billion and shareholders' funds of RM851.7 million.  Some of the listed companies amongst the MUI Group are Laura Ashley Holding (listed in London), Pan Malaysia Corporation and Pan Malaysia Holdings Berhad.

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