economies

 
 

Signs of progress in US-China trade talks

WASHINGTON, Dec 16 — Though markets are on edge and the arrest of a top Chinese executive threatened to spark a crisis, there are signs the US-China trade war can be resolved without further collateral damage to the global economy. The whole world…


Wall Street sells off as China growth fears reemerge

NEW YORK, Dec 14 ― Wall Street opened sharply lower today as investors took stock of slower growth in China, eroding gains for the major indices as they end another volatile week. China reported weaker-than-expected industrial output and retail…


Kian Joo hits limit up after Can-One MGO

PETALING JAYA: Kian Joo Can Factory Bhd’s share price hit limit up this morning, rising as much as 29.56% or 60 sen to RM2.63 upon resumption of trading, after a mandatory general offer (MGO) was launched by fellow can manufacturer and substantial shareholder, Can-One Bhd.

At 12.30 pm, the stock was still trading at RM2.63 with 173,000 shares done.

The trading of Kian Joo’s shares were suspended on Wednesday and Thursday, before resuming at 9 am this morning, to pave way for the announcement on MGO, which entails an offer price of RM3.10 per share or RM912.15 million for shares not already owned by Can-One in Kian Joo.

Can-One’s which also had the trading of its shares suspended for the same duration, rose 37sen or 19.17 sen to RM2.30 at early trade. At 12.30 pm, the stock was trading at RM2.14 with 674,100 shares done.

This comes after Can-One’s proposed acquisition of a 0.49% stake in Kian Joo from shareholder Tan Kim Seng for RM6.71 million or RM3.10 per share, raising its shareholding in Kian Joo to 33.39% from 32.9%.

The offer price represents a whopping 51.28% premium to Kian Joo’s five-day volume weighted average price of RM2.0492.

Can-One said the corporate exercise is part of the group’s expansion strategy to consolidate the can manufacturing business under Kian Joo in a bid to grow its sales and customer base.

It will also create enhanced scale and synergies for the enlarged Can-One group through, among others, streamlined procurement from suppliers to negotiate for bulk discount and improved operational efficiencies, resulting from economies of scale and integration.

In a related development, the Securities Commission Malaysia (SC) has reprimanded Can-One director and major shareholder Yeoh Jin Hoe and parties acting in concert (PACs) – including Can-One International Sdn Bhd (CISB) – for failure to undertake a mandatory offer for the remaining shares in Kian Joo after their shareholdings triggered the 33% MGO threshold.

This is breach of Section 218(2) of the Capital Markets & Services Act, 2007 and Paragraph 9(1)(a) of the Take-Overs Code.

The SC imposed a penalty of RM455,000 to be settled within 14 days against Yeoh and PACs as well as a restriction on the aggregate number of voting rights that may be exercised by the PAC in Kian Joo to not more than 33%.

If the proposed corporate exercise for which consultation with the SC was held on Dec 21, 2017 is not carried out within six months from the date of the commission’s letter, the PACs are required to reduce their collective holdings in Kian Joo to 33% and below.


China's consumers, factory output take a beating as economic gloom deepens

BEIJING, Dec 14 ― China's November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years as domestic demand softened further, underlining rising risks to the economy as China works to defuse…


BoJ: Japan business confidence unchanged in December quarter

TOKYO, Dec 14 ― Confidence among Japan's biggest manufacturers was unchanged this quarter after slipping for three consecutive surveys, central bank data showed  today. The Bank of Japan's Tankan report ― a quarterly survey of about 10,000…


ECB's Draghi 'confident' but cautious as risks loom

FRANKFURT, Dec 14 ― European Central Bank chief Mario Draghi said yesterday the institution will withdraw a major pillar of its stimulus, crediting mass bond-buying with helping save the eurozone from crisis since its introduction in 2015. But…


ECB worries multiply even as money-printing presses stop

FRANKFURT: The European Central Bank is all but certain to formally end its lavish bond purchase scheme but will take an increasingly dim view on growth, raising the odds that its next step in removing stimulus will be delayed. The long-flagged end of bond buys must be irreversible for the sake of credibility, but with […]


Malaysia’s GDP growth to expand to 4.8 per cent in 4Q18

KUCHING: Manufacturers in Malaysia are likely to sustain production in the domestic oriented industries, analysts observe. They projected that Malaysia’s real gross domestic product (GDP) could expand by 4.7 or 4.8 per cent year on year (y-o-y) in the fourth quarter of 2018 (4Q18). According to the Department of Statistics Malaysia’s latest update on the […]


Can-One launches MGO for Kian Joo at RM3.10 a share

PETALING JAYA: Can-One Bhd is launching a mandatory general offer (MGO) for Kian Joo Factory Bhd for RM3.10 per share or RM912.15 million for shares it does not own in Kian Joo.

This comes after Can-One’s proposed acquisition of a 0.49% stake in Kian Joo from shareholder Tan Kim Seng for RM6.71 million or RM3.10 per share, raising its shareholding in Kian Joo to 33.39% from 32.9%.

The offer price represents a whopping 51.28% premium to Kian Joo’s five-day volume weighted average price of RM2.0492. It is also 52.7% higher than its closing price of RM2.03 on Tuesday prior to the share suspension. Can-One was last traded at RM1.93.

Can-One and Kian Joo are both involved in the can manufacturing business, mainly serving the food and beverage industry. Currently, Can-One, via CISB, holds 32.90% equity interest in Kian Joo.

Can-One said the corporate exercise is part of the group’s expansion strategy to consolidate the can manufacturing business under Kian Joo in a bid to grow its sales and customer base.

It will also create enhanced scale and synergies for the enlarged Can-One group through, among others, streamlined procure-ment from suppliers to negotiate for bulk discount and improved operational efficiencies, resulting from economies of scale and integration.

“The proposals will allow Can-One Group to increase its range of products, namely the manufacturing of two-piece aluminum cans business as well as the manufacturing of corrugated box packaging business undertaken by Kian Joo to meet its customers’ requirement of being a total service provider of cans and packaging products.

“With the larger combined asset base of the enlarged Can-One group, the group will also be able to gain better access to both debt and equity capital markets to fund its current and future business activities and expansion,” said Can One.

In a related development, the Securities Commission Malaysia (SC) has repri-manded Can-One director and major shareholder Yeoh Jin Hoe and parties acting in concert (PACs) – including Can-One International Sdn Bhd (CISB) – for failure to undertake a mandatory offer for the remaining shares in Kian Joo after their shareholdings triggered the 33% MGO threshold.

This is breach of Section 218(2) of the Capital Markets & Services Act, 2007 and Paragraph 9(1)(a) of the Take-Overs Code.

The SC imposed a penalty of RM455,000 to be settled within 14 days against Yeoh and PACs as well as a restriction on the aggregate number of voting rights that may be exercised by the PAC in Kian Joo to not more than 33%.

If the proposed corporate exercise for which consultation with the SC was held on Dec 21, 2017 is not carried out within six months from the date of the commission’s letter, the PACs are required to reduce their collective holdings in Kian Joo to 33% and below.


(p14 2nd story eancan) Can-One offers high premium for Kian Joo at RM3.10 a share

PETALING JAYA: Can-One Bhd is launching a mandatory general offer (MGO) for Kian Joo Factory Bhd for RM3.10 per share or RM912.15 million for shares it does not own in Kian Joo.

This comes after Can-One’s proposed acquisition of a 0.49% stake in Kian Joo from shareholder Tan Kim Seng for RM6.71 million or RM3.10 per share, raising its shareolding in Kian Joo to 33.39% from 32.9%.

The offer price represents a whopping 51.28% premium to Kian Joo’s five-day volume weighted average price of RM2.0492. It’s also 52.7% higher than its closing price of RM2.03 on Tuesday prior to the share suspension. Can-One was last traded at RM1.90.

On another hand, the Securities Commission Malaysia (SC) has reprimanded Can-One director and major shareholder Yeoh Jin Hoe and parties acting in concert (including Can-One International Sdn Bhd (CISB)), for failure to undertake a mandatory offer for the remaining shares in Kian Joo after their shareholdings triggered the 33% MGO threshold.

This is breach of Section 218(2) of the Capital Markets & Services Act, 2007 (CMSA) and Paragraph 9(1)(a) of the Take-Overs Code.

The SC imposed a penalty of RM455,000 to be settled within 14 days against Yeoh and PAC as well as a restriction on the aggregate number of voting rights that may be exercised by the PAC in Kian Joo to not more than 33%.

If the proposed corporate exercise for which consultation with the SC was held on Dec 21, 2017 is not carried out within six months from the date of the SC letter, the PAC are required to reduce their collective holdings in Kian Joo to 33% and below.

Can-One and Kian Joo are both involved in the can manufacturing business, mainly serving the food and beverage industry. Currently, Can-One, via CISB, holds 32.90% equity interest in Kian Joo.

Can-One said the corporate exercise is part of the group’s expansion strategy to consolidate the can manufacturing business under Kian Joo in a bid to grow its sales and customer base.

It will also create enhanced scale and synergies for the enlarged Can-One group through, amongst others, streamlined procurement from suppliers to negotiate for bulk discount and improved operational efficiencies, resulting from economies of scale and integration.

“The proposals will allow Can-One Group to increase its range of products, namely the manufacturing of two-piece aluminum cans business as well as the manufacturing of corrugated box packaging business undertaken by Kian Joo to meet its customers’ requirement of being a total service provider of cans and packaging products.

“With the larger combined asset base of the enlarged Can-One group, the group will also be able to gain better access to both debt and equity capital markets to fund its current and future business activities and expansion,” said Can One.