KUALA LUMPUR: Shares of Can-One Bhd
surged to a high of RM3.88 early Monday on news it was looking to sell its dairy manufacturing business in a deal that values the asset around RM800mil.
At 9.32am, it was up 16 sen to RM3.78 with 244,400 shares done.
The FBM KLCI rose 4.86 points or 0.29% to 1,701.40. Turnover was 263.75 million shares valued at RM155.05mil. There were 264 gainers and 130 losers.
StarBizWeek reported that among the interested buyers for the stake is the private equity division of Malaysian civil service pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP), which is in the process of a due diligence over the deal.
The planned stake sale is in Can-One’s unit F&B Nutrition Sdn Bhd, which manufacturers sweetened condensed, evaporated and flavoured milk for clients on an original equipment manufacturer or OEM basis.
Quoting sources say that Can-One is seeking a valuation of up to 20 times earnings for F&B Nutrition, based on targeted profit after tax of RM42mil for the financial year 2015. This would value the business as high as RM840mil.
This is even bigger than Can-One current market capitalisation of RM695.6mil.
Sources said that Can-One is looking to sell up to 80% in F&B Nutrition.
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