Can-One controls 95.88% of KJCF


MIDF Research is negative on Can-One's mandatory general offer (MGO) for Kian Joo Can Factory Bhd (KJCF) as the price will be too steep and impact its gearing.

PETALING JAYA: The saga between Can-One Bhd and Kian Joo Can Factory Bhd (KJCF) is now coming to an end after the former obtained a 95.88% control of shares in the latter.In a filing with Bursa Malaysia yesterday, Can-One International, a unit of Can One holds 425.88 million shares or a 95.88% stake in Kian Joo.

This allows Can-One to force a compulsory acquisition of all shares in Kian Joo held by dissenting shareholders.

Can-One International intends to invoke the provisions of Section 222(1) of the Capital Market and Services Act, to compulsorily acquire the rest of Kian Joo shares for which acceptances have not been received.

Notwithstanding, the takeover offer will remain open for acceptances until April 30, being the final closing date.

Trading of Kian Joo shares will be suspended upon the expiry of five market days from then.

In December last year, Can-One, controlled by Yeoh Jin Hoe, in February launched a mandatory general offer to take over Kian Joo at RM3.10 a share.

The history between Can-One and Kian Joo began a decade ago in 2009, when Can-One entered a deal to acquire a 32.9% controlling stake for RM1.65 a share or RM241.1mil cash.

Due to attempts to block the transaction by a faction of Kian Joo’s founding family, the deal was only completed three years later in 2012.

A year later, Kian Joo received a proposal from a party viewed as connected to Can-One – Aspire Insight Sdn Bhd.

The company made a RM1.46bil cash takeover offer to buy Kian Joo’s entire assets and liabilities at RM3.30 a share.

This led to another legal battle, which was later struck out by the Kuala Lumpur High Court.

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