Can-One board accepts up to RM1b takeover offer


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.

KUALA LUMPUR: Can manufacturer Can-One Bhd's board has accepted the takeover offer for its subsidiary  F&B Nutrition Sdn Bhd from  Asia Dairy Creations Sdn Bhd (ADCSB) valued at between RM800mil and RM1bil.

RHB Investment Bank Bhd, which issued the statement on behalf of Can-One, said the board has deliberated on the offer and accepted it. This was based on the terms and subject to the conditions as set out in the term sheet.

“The offer will be subject to a definitive agreement and other ancillary agreements being entered into between Can-One and ADCSB within 30 days from the date of acceptance of the offer, with an automatic extension for a further period of 30 days, or such further extension of time as the parties may mutually agree,” it said.

The offer entailed the acquisition by ADCSB of the entire issued share capital of F&B Nutrition from Can-One at an indicative consideration of between RM800mil and RM1bil.

F&B Nutrition makes dairy and non-dairy products and is an original equipment manufacturer of sweetened creamer and evaporated creamer. 

Can-One owns 20% of F&B Nutrition while the remaining 80% is held by Amber Alliance Sdn Bhd, a unit of Can-One.

ADCSB is a special purpose vehicle managed by Southern Capital.

RHB Investment Bank was appointed principal adviser to the company in respect of the offer. 

Can-One's share price jumped 28 sen to RM3.71 at midday on Tuesday.
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