Hot Stocks Kian Joo jumps 9% on Toyota offer, Can-One up 2%

by **Cals** Tue 11 Mar 2014, 11:30

Hot Stocks Kian Joo jumps 9% on Toyota offer, Can-One up 2%

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 11 March 2014 09:45

KUALA LUMPUR (Mar 11): Kian Joo Can Factory Bhd rose as much as 9% on news that Japan-based Toyota Tsusho Corp plans to buy a controlling 51% stake in the former.

At 9.26am, Kian Joo was traded at RM3.44 with 402,000 shares done. The bourse's fourth-largest gainer had earlier risen as much as 29 sen to RM3.50.

Yesterday, Kian Joo said Toyota Tsusho intended to acquire a controlling 51% stake in the former for a maximum price of RM3.74 a share.

Tyota Tsusho planned to buy the stake in collaboration with its "possible partners", Kian Joo said.

Today, Analysts said they expected Kian Joo to attract market interest on the news.

"Meanwhile, there will likely be added interest in the following stocks today. (These include) Kian Joo, which has received a preliminary interest from a listed Japanese company to buy a 51% stake in the packaging company at a tentative maximum price of RM3.74 per share," HwangDBS Vickers Research Sdn Bhd wrote in a note today.

TA Securities Holdings Bhd said the firm maintained its "buy" call for Kian Joo shares with a target price of RM3.90 on the news.

According to TA, Toyota Tsusho's proposal indicates the buyer's confidence in Kian Joo's outlook.

"We believe this new interest shown by TTC (Toyota Tsusho), although only for 51% of Kian Joo’s stake, implies market’s confidence in Kian Joo's growth prospects underpinned by its solid fundamentals. More so since the interest was extended by a highly-reputable global company.

"That said, we do not see much synergy in terms of business and supply chain since both Kian Joo and TTC operate different businesses," TA wrote in a note today.

Yesterday, trading of shares in Kian Joo, Can-One Bhd and Box-Pak (M) Bhd was suspended since 2.30pm. The suspension was in conjuction with the announcement on Toyota Tsusho's proposal.

Can-One owns 32.9% of Kian Joo which in turn holds 54.83% in Box-Pak.

Prior to the suspension, Kian Joo shares were last traded at RM3.21 while Can-One changed hands at RM3.22. Shares of Box-Pak which manufacturers packaging products, were traded flat at RM2.22.

Trading of these stocks resumed today. Can-One shares rose as much as eight sen or 2% to RM3.30 at 9.28am. Box Pak was however untraded at the time of writing.