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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

The sale of Kian Joo Holdings Bhd’s stake in Kian Joo Can Factory Bhd (KJCF) may have hit a snag again.

This is the latest twist in the saga of the See family’s long drawn-out dispute to dispose of its 34.64% stake in KJCF.

It is believed that a majority of the See family or contributories of Kian Joo Holdings have voted not to sell a 32.9% stake of KJCF to another can maker, Can-One Bhd, at a meeting with Kian Joo Holdings’ liquidator KPMG Corporate Services Sdn Bhd yesterday.

A source said if KPMG heeded the objection of the contributories the sale might not go through.

“This is a possible scenario as the liquidator was the one who called for the meeting to hear the contributories out. They will try to make everyone happy or there may be even more lawsuits heading their way. Nevertheless, it is all in the hands of the liquidator,” the source said.

Last month, Can-One through its wholly-owned subsidiary Can-One International Sdn Bhd entered into a share sale agreement with Kian Joo Holdings to buy a 32.9% stake in KJCF for RM241.12mil or RM1.65 per share.

This resulted in a legal suit by KJCF managing director Datuk See Teow Chuan and 13 others who claimed that the transaction was “illegal”.

This is the second attempt to sell the stake in KJCF after a bid from Cycle & Carriage Singapore fell through following objections from both parties in 1999.

Last year, poor market conditions foiled Teow Chuan’s purchase of the said stake. KPMG was not available for comment at press time.

The See family dispute started some 14 years ago and split the See family into two factions.

It also led to proceedings to liquidate the Sees’ private holding company Kian Joo Holdings.

The faction led by Teow Chuan wants to liquidate Kian Joo Holdings by selling the shares through open tender and having the proceeds distributed among the See family members while the other faction, led by his younger brother and KJCF executive director Datuk Anthony See, wants the liquidation done via a distribution of the shares in specie.

Shares of KJCF were up 1 sen to close at RM1.20 yesterday.

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• Can-One to buy 32.9pc of Kian Joo

TIN can manufacturer Can-One Bhd (5105) will finally buy a third of its rival Kian Joo Can Factory Bhd for RM241.12 million, after making its first bid 18 months ago.

Can-One said the liquidators of Kian Joo Holdings Sdn Bhd accepted the conditional offer made by the former’s subsidiary to acquire 146.13 million shares of Kian Joo Can yesterday.

“The shares of 25 sen each in Kian Joo Can represents 32.9 per cent of its entire issued and paid-up share capital and will be purchased at RM1.65 per share,” Can-One said in a statement to Bursa Malaysia yesterday.

Can-One International Sdn Bhd, the acquirer, has paid a RM5 million deposit to Kian Joo Holdings in relation to this acquisition.
The share purchase was up for sale via tender by Kian Joo Holdings’ liquidators, KPMG Corporate Services Sdn Bhd.

In 2007, Business Times reported that the auction would probably end a long-drawn family tussle, in which the stake up for sale was held by 23 members of the See family.

The tussle was between two factions of the family members. One was led by Datuk Anthony See Teow Guan and the other by his older brother, managing director Datuk See Teow Chuan.

It was reported that Teow Chuan wanted the shares to be sold, while Teow Guan wanted them to be distributed among family members.

Kian Joo manufactures and distributes tin cans.

The acquisition is still subject to the approvals of the Securities Commission, the Ministry of International Trade and Industry and shareholders of Can-One. – BTimes

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