Can-One announced that it is planning to buy 2.17 million shares or a 0.49% stake in Kian Joo Can Factory Bhd (KJCFB) from Tan Kim Seng for RM6.71mil or RM3.10 per KJCFB share in cash. This will increase Can-One’s shareholding in Kian Joo to 33.39% from 32.9%, The Star Online reported.
In the event the mandatory general offer (MGO) is successfully undertaken, it would result in Kian Joo becoming a subsidiary of Can-One. Can-One expects the proposals to be completed in the first half of 2019, subject to all required approvals.
"The proposals are undertaken by Can-One as part of its expansion strategy to consolidate the can manufacturing business under Kian Joo Group to grow its sales and customer base, which will in turn improve the financial performance of Can-One Group," Can-One said.
“With the larger combined asset base of the enlarged Can-One group, the group will also be able to gain better access to both debt and equity capital markets to fund its current and future business activities and expansion,” it said.
“The strategic rationale is to allow the Can-One group to pursue its expansion strategy and long-term objective of evolving into a market leader in the can manufacturing industry, with opportunities for synergistic benefits arising from the consolidation with the KJCFB group,” it said.
Kian Joo Can Factory an investment holding company, manufactures and distributes tin cans and aluminium cans.
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