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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.

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• 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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1) Cypark Resources Bhd posted a higher pre-tax profit of RM30.235 million for the financial year ended Oct 31, 2011 compared with RM29.666 million in the same period last year.
In a circular to Bursa Malaysia, the solid waste management company said this was due to the significant decrease in administrative and finance costs.

However, its revenue declined to RM161.213 million from RM177.553 million previously, due to the delay in the handover of certain phase two landfill sites by the client.

Meanwhile, Cypark Resources said that its business would remain positive and strong in the forthcoming financial year 2012.

The company said the market growth of solid waste management services was expected to be driven by the increasing output of Malaysia’s population.

“By 2020, daily solid waste output is expected to bloat to 30,000 tonnes, compared to a current level of about 20,550 tonnes,” it added.

2) Jaks Resources Bhd reported a revenue of RM93.238 million in its fourth quarter ended Oct 31, 2011, an increase of nine per cent from the previous year’s corresponding quarter revenue of RM85.742 million.

In its filing to Bursa Malaysia, the company said the increase was mainly due to higher revenue recognition of works done for projects in the construction division. The group’s construction division has been the main contributor to the group and is expected to continue in the new financial year as construction projects are expected to gain momentum, the company said.

3) Eden Inc Bhd has entered into a sale and purchase agreement with Sanmukam Rajendran and Gunnallan Muthusamy for the

disposal of 3,000,000 ordinary shares of RM1.00 each in its wholly-owned subsidiary, Eden Coffee Garden Sdn Bhd.

In a filing to Bursa Malaysia, the company said this represents the entire issued and paid-up share capital of Eden Coffee, for a total consideration of RM36,000.

Eden Coffee was incorporated on Aug 9, 1983, with an authorised capital of RM3 million divided into 3,000,000 ordinary shares of RM1.00 each, which is fully paid-up.

“Contingent upon the disposal, Eden Coffee will cease to be the wholly-owned subsidiary of Eden. ”Having considered the rationale and effects of the disposal, the Board is of the opinion that the disposal is in the best interest of Eden,” the company added.
4) Silver Bird Group Bhd’s pre-tax profit for the financial year ended Oct 31, 2011 rose to RM5.756 million from RM3.655

million recorded in the same period last year.

Revenue increased to RM612.746 million from RM593.507 million previously, due mainly to the higher contribution from the consumer food division, it said in a filing to Bursa Malaysia today.

“The consumer food division increased its revenue by 66 per cent, from RM48 million in the corresponding period of the previous year to RM80 million in the current quarter, due to sales channel expansion, increase in selling prices as well as the successful launch of new products,” Silver Bird said.

The company will continue to enhance the revenue of the core business of the consumer food division in order to further improve the bottom line, it said.

In a separate filing, Silver Bird announced that it has yet to comply with the Main Market listing requirements of Bursa Malaysia Securities Bhd in relation to the public shareholding spread requirement. As at Dec 16, the company’s public shareholding spread stood at 20.01 per cent or 81,389,021 shares.

The company will continue to look at the various options to meet the shortfall in public shareholding spread, including pursuing private placement exercise/fun raising exercise and persuading its major shareholders to sell down their portion, it added

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