MNC Media Investment’s Value Generation Has Been Hidden By Wind-Down Of Legacy Business And Transfer Of Primary Listing

first published on Seeking Alpha

  • MNC Media Investment (MNCMI) is the holding company for the new media investments of the MNC Group, a leading Indonesian conglomerate.
  • MNCMI owns 50.1% of Letang Games, a highly successful mobile gaming company preparing a Shenzhen IPO with a possible valuation over $500mm
  • MNCMI owns 100% of Fumubang, a social commerce business for Chinese parents which is currently seeking external financing at a valuation of US93mm to $142mm
  • MNCMI has $89mm of unrestricted cash and securities that will support the growth of current and future businesses

MNC Media Investment (LTONY) trades at a large discount to its tangible Net Asset Value per share of $2.68 and current fair value in a range of $5.61 to $12.26. Potential catalysts for share price price appreciation towards fair value are:

  • Continued rapid growth of its key businesses (Letang and Fumubang)
  • Fund-raisings that bring visibility to the current fair value of these key subsidiaries
  • Any corporate reorganization that consolidates the shares trading in the US and Australia in order to raise visibility and liquidity

Full report: MNC Media Investment Report 101615

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