KUALA LUMPUR (June 4): Can-One Bhd has accepted the offer to sell its sweetened creamer and evaporated creamer original equipment manufacturer (OEM) unit F&B Nutrition Sdn Bhd for a price tag of between RM800 million to RM1 billion.

The offer came from Asia Dairy Creations Sdn Bhd (ADCSB), a special purpose vehicle managed by Southern Capital Group Private Limited, yesterday.

In a filing with Bursa Malaysia today, Can-One said its board has deliberated on the offer and has decided to accept it on the terms, and subject to conditions set out in the term sheet, which is appended to the Offer Letter.

Can-One said the offer will be subject to a definitive agreement and other ancillary agreements being entered into between Can-One and ADCSB within 30 days from the date of acceptance of the offer, with an automatic extension for a further period of 30 days, or such further extension of time as the parties may mutually agree.

F&B Nutrition is principally involved in manufacturing of dairy and non-dairy products and is an original equipment manufacturer (OEM) of sweetened creamer and evaporated creamer.

F&B Nutrition is 20%-owned by Can-One, while the remaining 80% is held by Amber Alliance Sdn Bhd, a wholly-owned subsidiary of Can-One.

RHB Investment Bank has been appointed as the principal adviser to Can-One in respect of the offer.

Can-One said pursuant to the term sheet, the acquisition consideration will be the sum equal to the normalised and recurring earnings before interests, tax and depreciation and amortisation of F&B Nutrition for the financial year ending Dec 31, 2019 (FY19) multiplied by 10.5, and less the net debt of F&B Nutrition which will be further defined in the Definitive Agreements.

Can-One’s share price gained 28 sen or 8.16% to RM3.71 today, giving it a market capitalisation of RM659.09 million. The counter was the second largest gainer across Bursa Malaysia, after Fraser & Neave Holdings Bhd.