Aspire seals $442.4 mn buyout deal for Malaysian canning company Kian Joo Can

Malaysian canning company, Kian Joo Can Factory Bhd yesterday said that it has accepted a 1.46-billion ringgit ($442.4 million) takeover bid from Aspire Insight Sdn Bhd, even though it received a higher offer from Japan's Toyota Tsusho Corp.

According to a filing with the Malaysian stock exchange, Aspire Insight, a joint venture private company between Chee Kay Leong and the Employees Provident Fund, had in November 2013 offered to acquire all of Kian Joo's assets and liabilities for 1.46 billion ringgit in cash, or 3.30 ringgit per share.

Post closing, Kian Joo said it would distribute the entire proceeds from the sale to shareholders in cash by the fourth quarter of 2014.

Kian Joo yesterday also declared a final tax exempt dividend of 2.5 sen per share, as well as special tax exempt dividend of 3.75 sen per share.

Earlier this month, Toyota Tsusho, the trading arm of car maker Toyota Group, offered to buy 51 per cent of Kian Joo for 3.74 ringgit per share in cash, which was 13.3 per cent higher than the 3.30 ringgit per share offered by Aspire

Kian Joo did not say why it agreed to Aspire's lower offer but said the sale is subject to the shareholders' approval at an EGM to be convened.

Founded in 1956 by the late See Boon Tay, Kian Joo manufactures tin cans and other packing solutions for food and consumer products.

The Batu Caves, Malaysia-based company operates in three segments, cans, cartons, and contract packing and sells its products primarily in Malaysia, Vietnam and Singapore.

It posted net profit of $35.8 million in 2013 on revenues of $390.4 million.