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: Can-One Bhd
’s gearing level is expected to come down as the company plans to repay RM750mil of its debt following the sale of its creamer segment, F&B Nutrition Sdn Bhd.
The deal would result in interest savings of about RM38.3mil per year, with the can manufacturer’s gearing levels falling to between 0.55 times and 0.79 times from 1.94 time now, according to MIDF Research.
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