Why MPHB falls 9% ?

MPHB falls from 3.89 to 3.51 today, almost 10% off last Friday closing price.

The fall was not due to bad result from their 1Q result. In fact 1Q result was much better than last year's same quarter.

MPHB reported that its net profit for the 1Q ended March 31, 2013 (1QFY13) was RM149 million on revenue of RM920 million.

Last year, in same quarter, the group made a profit of RM83 million on revenue of RM905 million.

Today's fall was due to its renounceable offer for sale of shares in MPHB Capital Bhd went ex.

The proposed demerger will see its non-gaming assets grouped under MPHB Capital Bhd. It will go public on June 25, 2013.

MPHB will be renamed to Magnum Corp Bhd, hence taking over its gaming brand.

The corporate exercise included MPHB's offer for sale of 715 million MPHB shares to MPHB shareholders on a one offer share for every two MPHB shares held as at the end of Wednesday. The offer price was RM1 per offer share.