This article first appeared in The Edge Financial Daily, on October 13, 2015.
CAN-ONE BHD (-ve)
CAN-ONE (Fundamental: 1.1/3; Valuation: 2.4/3) is back in the limelight after its 32.9%-owned associate, Kian Joo, announced Bursa’s approval for an extension of time until March 31, 2016 to submit a draft circular to shareholders. The circular pertains to the disposal of its business to Aspire Insight Sdn Bhd (AI).
To recap, AI had, in 2013, launched a takeover offer for Kian Joo at RM1.47 billion or RM3.30 per share. However, the sale has long been stalled by legal suits filed by substantial shareholder Datuk Anthony See.
The stock appears cheap from a break-up value perspective. Its 32.9% stake in Kian Joo is worth RM453.0 million or 90.7% of its current market capitalisation of RM499.6 million. Excluding its share of net assets in Kian Joo, Can-One’s net assets stood at RM444.3 million or RM2.31 per share.
Can-One manufactures tin cans, plastic jerry cans, bag-in-box, dairy and non-dairy products.