Box-Pak shares soar on talk of privatisation

Kian Joo Can Factory Bhd is planning to privatise
subsidiary Box-Pak (Malaysia) Bhd under a multimillion ringgit deal that
will involve certain Japanese firms, sources say.

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Kian Joo would pay RM3.20 a share for the remaining shares it
does not own in its profitable corrugated carton boxes manufacturing unit, they said.

Meanwhile, Box-Pak shares were the second top gainer on Bursa
Malaysia yesterday. The stock soared 37 sen to close
at RM2.47 with 2.81 million shares traded. At RM2.47, its market capitalisation stood at RM148.26 million.

Year-to-date,
Box-Pak has gained 107.56 per cent or RM1.28, with a low of RM1.09 on
March 16 this year. Kian Joo Can owns 32.91 million shares, or a 54.83
per cent stake, in Box-Pak. Another single largest shareholder is Amanah
Saham Bumiputera Bhd

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with 3.1 million shares or a 5.16 per cent stake.

The sources
said Kian Joo Can had hired Maybank Investment Bank Bhd to handle the
privatisation deal. Kian Joo Can executive director Datuk Anthony See
Teow Guan, when contacted yesterday, denied that it was planning such
privatisation.


“No, there’s no truth in it. I don’t know who spread the rumours,” said See, who is also managing director of Box-Pak.
Besides corrugated carton boxes, Box-Pak also manufactures
and sells die-cut trays, wrap-around cartons, Point of
Purchase (POP) and paper palette for use in the packaging industry.

The company was incorporated in December 1974 and listed on
the local bourse on July 18 1996. Box-Pak nearly doubled its net
profit in the first nine months ended September 30 2011 to
RM10.35 million, from RM5.79 million net profit a year ago.

The company attributed the improved profit to higher revenue
and better production efficiency. Group revenue rose to
RM178.39 million during the period, up from RM134.73 million previously.