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Monday, November 17, 2014

Can-One, Kian Joo rise after high court decision clears way for vote

Source: http://www.theedgemarkets.com/my/article/can-one-kian-joo-rise-after-high-court-decision-clears-way-vote

KUALA LUMPUR (Nov 17): Investors appear excited over Can-One Bhd (Can-One) ( Financial Dashboard) and Kian Joo Can Factory Bhd (KJCF) ( Financial Dashboard) shares after a Kuala Lumpur High Court decision clears the way for Can-One to vote in an extraordinary general meeting for the sale of KJCF.

To recap, the high court had struck out a suit filed in May by Datuk Anthony See preventing Can-One from voting for the sale of KJCF to Asipre Insight Sdn Bhd at RM1.47 billion cash or RM3.30 per share.

The deal is still pending shareholder’s approval due to the suit filed by See.

As at 3pm, Can-One shares rose eight sen or 3.2% to RM2.58 with 131,000 shares done.The stock was among the top gainers in today’s early trade.

Kian Joo climbed eight sen or 2.8% to RM2.95 with 500,300 shares done

After the high court decision, Public Invest Research upgraded its rating of Kian Joo to "trading buy" due to short-term potential gains with the target price staying at RM3.30.

“If the proposed taransaction materialises, you will have a certain RM3.30 per share in your pocket (netting a gain of 43 sen or about 15%).

“ If not, we still see that value materialising, but over the longer term, as it remains imperative parent-company Can-One squeeze out further operational improvements (and essentially stronger earnings, thereby increasing its intrinsic value) from KJFC for greater dividend income, ” said the research house.

“Either which way, it’s a 'gain-gain' situation,” it concluded.

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