KUALA LUMPUR (Feb 19): Can-One Bhd, which has announced a takeover of its associate Kian Joo Can Factory Bhd, does not intend to maintain the latter's listing status upon completion of the exercise.

This was stated in the takeover notice which Kian Joo sent out to its shareholders in a notification filed with Bursa Malaysia today.

Last Thursday in an extraordinary general meeting, shareholders of Can-One agreed with the company's proposal to make a mandatory general offer to Kian Joo.

Kian Joo subsequently received a notice of conditional mandatory takeover offer from Can-One to acquire the remaining 295.87 million shares or a 66.61% stake in Kian Joo that it does not own at RM3.10 per share or a total of RM912.15 million.

On Dec 13, Can-One announced that it had signed a conditional share sale agreement with Tan Kim Seng (a veteran of Kian Joo's subsidiary Box-Pak (M) Bhd) to buy his 0.49% stake in Kian Joo for a cash consideration of RM6.71 million or RM3.10 per share.

Upon the completion of the acquisition, Can-One saw its shareholding in Kian Joo increase to 33.39% from 32.9%.

Can-One has said the takeover was part of its expansion strategy to consolidate its can-manufacturing business under Kian Joo in order to grow its sales and customer base, which would, in turn, improve its financial performance.

Kian Joo's shares closed unchanged at RM3.03 while Can-One was up two sen or 0.75% at RM2.70.