The strategic block of 34.64% in can manufacturer Kian Joo Can Factory (KJCF) has yet to attract a buyer despite it having been put up for sale since August 2008.
A strategic partner was crucial for KJCF as it would not only put a halt to years of family dispute in the company but also boost its earnings and market share. This is the third time that the block has been put up for sale.
Sources have indicated that there have been issues relating to the price. It is learnt that the deadline for the sale is Nov 27 2008.
KPMG Advisory Services Sdn Bhd, which is the liquidator of the block of shares, declined to comment.
There are a lot of potential buyers but the (See) brothers are unable to agree on the price, among others.
Based on yesterday’s price of RM1.03 per share, the block of 153.86 million shares is valued at RM158.5mil.
Latest filings to Bursa Malaysia show that Teow Chuan owns a direct stake of 2.97%, or 13.18 million shares, in KJCF. His indirect stake stands at 35.2% or 156.37 million shares.
As at May 2008, KJCF’s market share of the aluminium can business in Malaysia was about 70%. It had an estimated 50% market share of the tin can market, 10% to 15% of the corrugated carton market and about 30% of the market for polyethylene terephthalate bottles.
Among the companies that had submitted bids for the stake included Can-One Bhd.
Thursday, November 27, 2008
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