Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on January 17, 2019

Can-One Bhd (+ve)

TRADING of shares in Can-One Bhd (fundamental: 0.8/3, valuation: 1.8/3) triggered our momentum algorithm yesterday for the first time since November 2016. The counter closed up 13 sen or 5.06% at RM2.70 yesterday, with 474,100 shares done, exceeding its 200-day average volume of 60,743 shares.

On Dec 13, Can-One announced that it was buying another 2.17 million shares or a 0.49% stake in Kian Joo Can Factory Bhd, after which it would extend a mandatory general offer (MGO) to Kian Joo’s minority shareholders at RM3.10 per share. On completion of the deal, Can-One will have 33.39% of Kian Joo. It said the Securities Commission Malaysia (SC) had reprimanded and fined its major shareholder Yeoh Jin Hoe and parties acting in concert with him for failing to make an MGO for the rest of Kian Joo after they triggered the 33% MGO threshold. Since the MGO’s announcement, Can-One shares have been on an uptrend, having climbed near 40% since Dec 11, when they were trading at RM1.93.

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