Mary Chia Holdings Limited: Sell or Hold?

Name: Mary Chia Holdings Limited: Sell or Hold?
SKU: 9B19N017_P

Ruth S.K. Tan; Zsuzsa R. Huszar;Weina Zhang

Product #:9B19N017_P

Supplier:Ivey/NUS

Discipline:Entrepreneurship, Finance

Setting:Singapore And Malaysia, 2017

Details:Case (PDF) • 18 pages • 2019-08-28

Subjects:

Entrepreneurship Finance and investing

Geography:

Singapore Malaysia Asia

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$9.71

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Mary Chia Holdings Limited (MCH) was a provider of lifestyle and wellness services for women and men in Singapore and Malaysia. Listed on the Singapore Catalist, the company had experienced a decline in financial performance and share price. On August 24, 2017, MCH announced that its founder would sell her 60.98 per cent stake to Suki Sushi Private Ltd., an unlisted company tightly controlled by the daughter and son-in-law of MCH’s founder. Suki Sushi’s offer was at SG$0.111 per share, which was almost double the closing price. Should current MCH shareholders accept Suki Sushi’s offer and sell their shares, and does Suki Sushi’s offer constitute an investment opportunity for investors not currently holding MCH shares?

Learning Objectives

This comprehensive valuation case can be used in an advanced undergraduate or MBA course in corporate finance or investment analysis. It presents an opportunity for students to undertake the following:

Analyze a company’s financial statements.
Compare the company’s performance to the industry benchmarks.
Apply various valuation models to determine the company’s share price.
Make recommendations to both current and potential shareholders.