KUALA LUMPUR (Dec 13): Can-One Bhd is buying another 2.17 million shares or a 0.49% stake in Kian Joo Can Factory Bhd and will subsequently extend an mandatory general offer (MGO) to the minority shareholders of Kian Joo at an offer price of RM3.10 per share.

In a filing with Bursa Malaysia today, Can-One said its wholly-owned subsidiary Can-One International Sdn Bhd has entered into a conditional share sale agreement (SSA) with Tan Kim Seng for the 0.49% stake in Kian Joo for RM6.71 million or RM3.10 per share cash.

Upon completion of the proposed acquisition, Can-One will see its shareholding in Kian Joo increase to 33.39% from 32.9% presently.

Hence, Can-One will be obliged to extend a mandatory general offer (MGO) for all the remaining 66.61% stake in Kian Joo it does not owned at an offer price of RM3.10 per share.

Upon completion of the proposed MGO, Kian Joo will become a subsidiary of Can-One. Can-One expects the proposals to be completed by the first half of 2019, subject to the approval from its shareholders.

Can-One said it does not expect to incur any additional financial commitments to put the assets/ businesses of Kian Joo Group on-stream as the group already has on-going businesses.

"The proposals are undertaken by Can-One as part of its expansion strategy to consolidate the can manufacturing business under Kian Joo Group to grow its sales and customer base, which will in turn improve the financial performance of Can-One Group," it added.

It will fund the proposals via internal funds and/or bank borrowings.

Trading of Can-One and Kian Joo securities has been suspended today, pending the release of this announcement. Can-One shares last traded on Dec 12 at RM1.93 for a market capitalisation of RM370.86 million, while Kian Joo shares last closed on the same date at RM2.03, valuing it at RM901.66 million.