Kian Joo/Can-One ... Feb 2009

Can-One, Malaysia largest maker of tin cans for edible oils, is likely to acquire up to a 34.64% stake in aluminium can producer Kian Joo Can Factory (KJCF).

*** To recap, the stake was put up for sale by KPMG Advisory Services Sdn Bhd, the liquidator of Kian Joo Holdings Sdn Bhd (KJH), in Aug 2008. KJH, which is the holding vehicle of KJCF’s founding See family, owns the 34.64% interest in KJCF ***

A source said that Can-One has obtained the financing for the acquisition of the 153 million shares in KJCF, which, based, based on the closing price of rm1.34, would cost about RM206 million.

The others shortlisted candidate for the block is KJCF’ MD Datuk See Teo Chuan. He has a direct equity stake interest in the company to 2.97%. He is deemed to hold another 35% stake in KJCF through his shareholding in KJH and others.

According to sources, 21st Feb 2009 is the final day for bidders to secure their financing to acquire stake in KHCF. The bidders are to acquire a minimum of 32% to avoid a general offer or up to 34.64%.

Other than the expectation that the buyer of the block may trigger a general offer, the hope is that the entry of a strategic shareholder would help resolve the dispute among the members of the See family in the company.

Among the other substantial shareholders of KJCF is the EPF with a 12.41% stake.