KUALA LUMPUR: The Securities Commission Malaysia (SC) today reprimanded and fined Can-One Bhd major shareholder Yeoh Jin Hoe and parties acting in concert (PAC) with him for failing to make a mandatory general offer (MGO) for the rest of Kian Joo Can Factory Bhd after they triggered the 33% MGO threshold.

In a filing with Bursa Malaysia today, Can-One said the SC had vide its letter dated Dec 10, 2018 reprimanded Yeoh and the PAC (which includes wholly-owned subsidiary Can-One International Sdn Bhd) for breach of Section 218(2) of the Capital Markets and Services Act, 2007 and Paragraph 9(1)(a) of the Take-Overs Code.

The SC has also imposed a penalty of RM455,000 on Yeoh and the PAC, as well as a restriction on the voting rights that may be exercised by the PAC in Kian Joo to not more than 33%.

Yeoh is the group managing director of Kian Joo and its subsidiary Box-Pak (Malaysia) Bhd. He holds a 26.98% stake in Can-One, which has a 32.9% shareholding in Kian Joo.

"In addition, 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 Dec 10, 2018, the PAC are required to reduce their collective holdings in Kian Joo to 33% and below."

Following this, in a separate filing, Can-One revealed that it is buying another 2.17 million shares or a 0.49% stake in Kian Joo Can and will subsequently extend an MGO to the minority shareholders of Kian Joo at an offer price of RM3.10 per share.

Can-One said its wholly-owned subsidiary Can-One International Sdn Bhd has entered into a conditional share sale agreement 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.

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.