Yeoh and Chee are not connected in takeover offer, says KJCF

by **Cals** Mon 28 Apr 2014, 13:11

Business & Markets 2014

Written by Siow Chen Ming of theedgemalaysia.com

Monday, 28 April 2014 09:10

KUALA LUMPUR: To set the record straight, Kian Joo Can Factory Bhd (KJCF) last Friday published a lengthy, six-page letter on Bursa Malaysia’s website clarifying key matters concerning the RM1.47 billion takeover offer for the company’s assets and liabilities, which was launched by its executive director cum chief operating officer Chee Khay Leong together with the Employees Provident Fund (EPF).

In the statement, KJCF said it had received confirmation from its group managing director and indirect major shareholder, Yeoh Jin Hoe, that he was not connected to Chee or to the joint offer by Chee and the EPF.

“Further, a similar confirmation has been received from Mr Chee Khay Leong to the effect that he is not a person connected (as defined in the Main Market Listing Requirements of Bursa) with Mr Yeoh Jin Hoe and/or Can-One Bhd [Yeoh owns 34.02% of Can-One, which in turn controls 32.9% of KJCF].

“The company is also not in possession of any material credible information that states otherwise than what has been alluded to above in relation to this issue,” it added.

KJCF’s statement served to further stress that Yeoh is not an interested party in Chee’s joint takeover offer with the EPF to acquire the assets and liabilities of the company for RM1.47 billion. Without any formal link between Chee and Yeoh/Can-One, the latter as a major shareholder of KJCF will not abstain from voting on the offer.

The support from Yeoh/Can-One would be crucial for Chee and the EPF to push the deal through, considering that the offerors need the approval of at least 75% of the shareholding present and voting at the extraordinary general meeting (EGM). It is expected that KJCF will table the offer from Aspire Insight Sdn Bhd — a joint vehicle led by Chee and the EPF — for shareholders’ approval at an EGM next month.

KJCF was responding to the allegations made recently by dissenting director Datuk Anthony See, whose family lost control of the can manufacturer two years ago after failing to invalidate the sale of their 32.9% stake in KJCF to Can-One.

In its statement last Friday, KJCF said See had written in a letter dated April 15 that “he has found many elements of conflict of interest between Can-One, Chee and Yeoh and that he was duty bound to bring to the notice of the board and shareholders as to what he discovered recently”.

“In this regard, Datuk Anthony See Teow Guan indicated that a set of conflicts of interest and acting in concert documents were being compiled and would be sent to the board of directors of the company shortly,” it added.

“In relation to the allegations of conflicts of interest and acting in concert, the company has yet to receive any supporting documents from Datuk Anthony See Teow Guan.

“The company further notes that up until the receipt of the letter dated April 15, 2014, no such prior allegation of a similar nature had been raised or levelled by Datuk Anthony See Teow Guan at any board of directors meeting of the company,” it said.

This article first appeared in The Edge Financial Daily, on April 28, 2014.