Another extension to March 2016 hoo la la
Kian Joo clarifies reasons for proposed privatisation extension
By Chen Shaua Fui / theedgemarkets.com | October 5, 2015 : 8:32 PM MYT
KUALA LUMPUR (Oct 5): Kian Joo Can Factory Bhd ( Valuation: 1.50, Fundamental: 2.00) has clarified that the extension of the period to fulfil the conditions precedent for the privatisation offer by Aspire Insights Sdn Bhd to March 2016 was due to ongoing legal suit, document preparation and additional time for the buyer to fulfil due diligence.
In a filing with Bursa Malaysia today, Kian Joo also explained that the disposal consideration that amounted to RM1.47 billion or RM3.30 per Kian Joo share remained unchanged.
Kian Joo said the extension of the date to March 23, 2016 from Sept 23, 2015, in which all conditions precedent to the business sale agreement (BSA) entered between both parties have to be fulfilled, was due to three reasons.
Firstly, the ongoing court case in the Kuala Lumpur High Court brought by its former director See Teow Guan against Kian Joo. The case has concluded following the decision of Court of Appeal on the Civil Appeal Suit in respect of the aforementioned High Court Suit.
Secondly, the preparation and completion of the necessary documentation, including the circular to shareholders for the proposed disposal and the submission of valuation reports to Bursa Securities ( Valuation: 2.10, Fundamental: 2.30).
Thirdly, the extension is to provide additional time for due diligence by Aspire in relation to the proposed disposal.
Kian Joo had received a privatisation offer to dispose of the entire company to Aspire in March 2014 but it was extended several times. The recent extension was on April 6 to have until Sept 30, 2015 to submit draft circular to shareholders on the proposal.
Shares in Kian Joo traded unchanged at RM3.09 today, for a market capitalisation of RM 1.37 billion.