Can-One extends deadline of Kian Joo MGO for second time

TheEdge Wed, Apr 03, 2019 09:13pm - 4 years View Original


KUALA LUMPUR: Can-One Bhd’s subsidiary Can One International Sdn Bhd has extended the deadline for its mandatory general offer for Kian Joo Can Factory Bhd to April 30 from April 8, according to the latest filing with Bursa Malaysia.

This is the second extension for the MGO. However, Can-One did not reveal the rationale for the extension of the deadline.

“The closing date has been extended from 5pm on April 8 to 5pm on April 30 (final closing date), being the maximum allowable offer period of 60 days from the posting date in accordance with the Rules and Section 2.4 of Appendix I of the offer document,” said the announcement.

As of today, Can One controls an 82.9% stake, or 368.64 million shares, in KJCB. The Employees' Provident Fund, which owned a 10.13% stake, accepted the MGO last month.

The substantial shareholder who has yet to take up the offer is likely to be See Teow Chuan who is holding an 8.97% stake.

It will be interesting to see if such a privatisation exercise will become gridlocked like in the case of Hong Leong Capital Bhd, in which Hong Leong Financial Group Bhd only managed to hold an 81.33% stake, and failed to take it private simply because a small group of minority shareholders declined the offer.

Minority shareholders of KJCF have been advised to accept the takeover offer at RM3.10 per share.

In its independent advice circular to Kian Joo shareholders, UOB Kay Hian Securities said it is of the view that the MGO to acquire Kian Joo is “not fair” but “reasonable”.

According to UOB Kay Hian, the offer was deemed not fair as the RM3.10 offer price represents a 25 sen or 7.46% discount to the estimated fair value of RM3.35 per Kian Joo share.

However, the independent advisor found the takeover offer to be reasonable as Kian Joo shares have not traded above the offer price for the past two years.

KJCF's share price closed at RM3.10 today.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

BURSA 7.460
CANONE 2.670
HLCAP 4.100
HLFG 16.400

Comments

Login to comment.