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Federal Court has given green light to KPMG Corporate Services to dispose of its 32.9 per cent stake in Kian Joo Can Factory to Can-One International

KPMG Corporate Services Sdn Bhd has been given the green light to sell the 32.9 per cent stake in Kian Joo Can Factory Bhd (Kian Joo) to Can-One International Sdn Bhd (CISB), a wholly-owned unit of Can-One Bhd (Can-One).

The verdict was passed by the Federal Court on Thursday.

Can-One share prices have been rising since then. The counter gained more than 30 sen on Thursday and added another 22 sen yesterday to close at RM1.59 a share.

The court decision is a major boost for Can-One as it had earlier won a bid to acquire the 32.9 per cent stake in Kian Joo for RM1.65 a share.

Kian Joo’s last traded price was RM2.20 a share. In a statement to Bursa Malaysia, Can-One said it was allowed to proceed with the purchase of 146.13 ordinary shares of RM0.25 each held by Kian Joo Holdings Sdn Bhd (KJ Holdings) in Kian Joo at RM1.65 per share for an aggregate consideration of RM241.17 million to CISB.

Can-One, through CISB, had entered into a share sale agreement with KJ Holdings in 2009 to buy a 32.9 per cent stake in Kian Joo

for RM241.12 million.

Bankers, meanwhile, said it was unlikely that Can-One would undertake a general offer for Kian Joo because its purchase price for the 32.9 per cent block was much lower than the

current traded price of Kian Joo.

Rather, they said Can-One would likely look to merge with Kian Joo in a deal akin to the Sapura Crest Bhd-Kencana Petroleum Bhd

merger.

“It’s too early to comment on the structure of the deal but things will become clearer in a few days,” said the source.

The announcement by Can-One comes just a day after Kian Joo informed Bursa Malaysia that Datuk See Teow Chuan had ceased to be the company’s managing director.

Related Posts:

• Kian Joo sales on and off saga
• Can-One to buy 32.9pc of Kian Joo

According to an announcement from Bursa Malaysia:

LOCAL PARTICIPANTS ENTRY REQUIREMENTS FOR DERIVATIVES TRADING EASED; EXAMINATION, ACADEMIC AND EXPERIENCE PRE-REQUISITES REMOVED

Individuals who aspire to be professional derivatives traders or Local Participants can now do so by attending a two-day familiarisation programme with Bursa Malaysia Derivatives.

A Local Participant is a professional derivatives trader who trades their own account, or is a self-employed trader. With the easing of entry requirement, candidates no longer need to take the licensing examination, or show the relevant academic qualification and industry experience. This is part of the Exchange’s initiatives to increase the number of Local Participants in the market.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of Bursa Malaysia Derivatives said, “We are cognisant that in this day and age, those who want to trade have a lot of resources at hand to make informed decisions. As such, we should not legislate qualification for those who want to trade in derivatives. In substitution of the qualification requirement, we are introducing a familiarisation programme so Local Participants can equip themselves with the relevant knowledge and understand the risks associated with derivatives trading.

“This liberalisation measures signifies our commitment to grow the Local Participants base as they contribute greatly to market liquidity. Traders can now easily manage their own portfolio, while at the same time enjoy the many benefits available including fee rebate and tax abatement. With the advance of internet trading, they can trade anywhere, anytime.”

Local Participants can trade with their own funds and are not permitted to conduct trades on behalf of Clients. They will enjoy exchange and clearing fees rebate if they trade 1,000 contracts per month or more. Local Participants are registered with Bursa Malaysia Derivatives (BMD) and can trade in all BMD’s products.

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