Hot Stock Box-Pak tumbles 8.09% after Kian Joo takeover bid nixed

by **Cals** Mon 18 Apr 2016, 01:30

Hot Stock

[size=28]Box-Pak tumbles 8.09% after Kian Joo takeover bid nixed

By Meena Lakshana / theedgemarkets.com | April 15, 2016 : 1:19 PM MYT
KUALA LUMPUR (April 15): Shares of Box-Pak (Malaysia) Bhd, a 54.83% subsidiary of Kian Joo Can Factory Bhd, tumbled as much as 8.09% after a RM1.47 billion takeover offer for Kian Joo was called off.
At 12.30pm, the stock declined 22 sen to RM2.50, with a thin volume of 25,000 shares done. Box-Pak was the top decliner on the local bourse at noon market close today.
Year to date, the stock has risen 4.41%, outperforming the FBM KLCI which has risen 1.85%.
Kian Joo’s largest shareholder Can-One Bhd also saw its shares shed 7 sen or 1.72% to RM3.99 on a volume of 205,100 shares done. It was the 12^th top decline on Bursa Malaysia today.
Can-One holds a 32.9% stake in Kian Joo, followed by the Employees Provident Fund (EPF) with 10.03%.
Since the takeover of Kian Joo was first proposed by Aspire Insight Sdn Bhd in November 2013, Box-Pak shares rose 11.5% while Can-One shares rose 6.25%.
In an announcement to Bursa Malaysia today, Kian Joo said both parties had mutually called of the takeover offer and terminating the business sale agreement (BSA), properties sale agreement (PSA) and assets sale agreement (ASA) entered by both parties.
In November 2013, Aspire had offered to buy Kian Joo's assets and liabilities for RM1.47 billion or about RM3.30 per share.
In March 2014, Kian Joo and Aspire had signed a BSA, PSA and ASA for the planned disposal.
Kian Joo had said then it intended to undertake a capital reduction and cash repayment should the takeover materialise.
Kian Joo said it planned to distribute the sale proceeds to shareholders at "not less than RM3.30 per Kian Joo share."
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