KIAN JOO CAN FACTORY BHD

KLSE (MYR): KIANJOO (3522)

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669 comment(s). Last comment by Gore Victor Lee 2019-08-29 15:11

AlfI3

1,261 posts

Posted by AlfI3 > 2019-01-16 10:14 | Report Abuse

As spb mgo had increased frm 5.70 to 6.30。Wud u think kianjoo mgo folo d same pattern?

Posted by lionel messi > 2019-01-16 10:28 | Report Abuse

not sure when the EGM but should be before Apr this year. my view is Canone shareholders are likely to reject it as there is no good reason for the MGO. it won't add to its earnings and Canone is already the tai kor in KJoo anyway, running the operations and the controlling shareholder.

therefore no question of it raising the offer price ala SPB. SPB is different because it is grossly undervalued and most assets are in Damansara Heights.

AlfI3

1,261 posts

Posted by AlfI3 > 2019-01-24 07:50 | Report Abuse

Many thx for d thoughtful sharings

AlfI3

1,261 posts

Posted by AlfI3 > 2019-01-25 07:02 | Report Abuse

Canone egm notice had been circulated to shareholders

Posted by lionel messi > 2019-01-25 10:14 | Report Abuse

yes, I will be very surprised if Canone shareholders approve it as it will blow up their borrowings. unless Canone has some hidden plans for it in the future and sees it as undervalued at RM3.10 as opposed to the RM3.30 that EPF tried to buy 5 years ago.

if approved, Canone will definitely have to undergo a rights issue to pare down borrowings. that will be bad considering how the market dislike rights issue at the moment. unless it comes with many sweeteners such as bonus, warrants and their coming quarterly results improved a lot.

as for KJoo, if the MGO is rejected, its share price will plunge.

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-01 04:11 | Report Abuse

Again, it is still at d speculation stage. If it is as simply thought by d public, then d major shareholder cant mik much $. It shud b folo d contrarian way tat against d public guesting, then ony d big sharks got meat to eat. Dier lvl of thoughts r diffren frm us.....

Larrytrader

1,453 posts

Posted by Larrytrader > 2019-02-14 11:15 | Report Abuse

Passed !!!!!!

Larrytrader

1,453 posts

Posted by Larrytrader > 2019-02-14 11:15 | Report Abuse

RM3.10 for everyone!!!!

Posted by patrickteo > 2019-02-14 11:43 | Report Abuse

Now go and buy, still can earn 5%, better than FD, QUICK

Larrytrader

1,453 posts

Posted by Larrytrader > 2019-02-14 15:47 | Report Abuse

Bought ald lol at 2.67

Larrytrader

1,453 posts

Posted by Larrytrader > 2019-02-14 15:48 | Report Abuse

Now 2.99 buy earn 3.6% oni

firehawk

4,777 posts

Posted by firehawk > 2019-02-14 15:49 | Report Abuse

Now, Canone paid cheaper price, compare to 3 years ago .... however, i think most of the KJ shareholders will accept the offer this time .....

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-14 17:18 | Report Abuse

Buy canone, boxpack or kj? Very confusing. All these 3 ctrs r up, which ctrs r sure win punya??

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-14 17:19 | Report Abuse

Larrytrader, at this juncture, can u tell which ctrs is more reliable to invest?

sheldon

1,401 posts

Posted by sheldon > 2019-02-15 17:01 | Report Abuse

The offer is so measly. Also if any dividends declared, the offer price will be reduced by the dividends.

Better wait for UOB Kay Hian's advise. If they are objective, I believe they would say that it's worth much more.

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-18 07:15 | Report Abuse

Sheldon, when can v expect UOB's advice comment? It mentions wil it declare dividens too prior to its mgo??

sheldon

1,401 posts

Posted by sheldon > 2019-02-18 15:46 | Report Abuse

I've no idea precisely when but UOB KH is supposed to be objective and logical when they give their opinion about the price - usual text book stuff like valuations based on PE and dividend discount model.

sheldon

1,401 posts

Posted by sheldon > 2019-02-18 16:10 | Report Abuse

Personally I feel that the offer is way too low.

If you use the textbook lowest or base case valuation which is NTA, the shares as at end of 2017, it's worth RM3.30. After 1 year of profit, it should be worth even more.

My feeling is that KJ probably has been talking down the earnings over the past quarters to portray a company that is ugly so that minority shareholders will just let go at the low price they offer.

Can-one wants to buy the company for a song.

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-19 00:53 | Report Abuse

Based on ur xplainations, it makes sence too tat kj worth more than 3:30

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-21 11:04 | Report Abuse

But how come not at 3:07 oso cant reach, mgo plan not really concrete enuf???

sheldon

1,401 posts

Posted by sheldon > 2019-02-21 16:47 | Report Abuse

I believe that the final price offered will be higher than 3.10. Seow brothers & the fund managers are going to demand for more.

sheldon

1,401 posts

Posted by sheldon > 2019-02-22 06:05 | Report Abuse

AlfI3 Sheldon, when can v expect UOB's advice comment?

You would have received the notification of conditional mandatory takeover dated 14 Feb. Independent Advice will be despatched by 24 Feb.

taitaumau

275 posts

Posted by taitaumau > 2019-02-22 12:02 | Report Abuse

Unless due dates are changed, latest issuing dates

Offer document - 07/03/19 (21 days from the notice of take-over)
Independent advice circular - 17/03/19 (10 days from date of offer document)

sheldon

1,401 posts

Posted by sheldon > 2019-02-25 09:38 | Report Abuse

Fellow investors, 3.10 is way too low - so don't sign!

veritas

48 posts

Posted by veritas > 2019-02-26 05:54 | Report Abuse

Notification is dated 19 Feb

AlfI3

1,261 posts

Posted by AlfI3 > 2019-02-26 06:52 | Report Abuse

速战速决 to avoid unforeseen changes

Posted by zolasteven > 2019-02-27 15:34 | Report Abuse

If we dont accept the offer and if the offerer achieved 90% or more, the offerer does not intend to maintain listing in klse. This means those still holding the shares are stuck and are unable to sell their shares, correct?

sheldon

1,401 posts

Posted by sheldon > 2019-02-27 16:15 | Report Abuse

zolasteven - yes but they give the option to Can-one to acquire the shares at the offer price & also the 10% or less minority shareholders to sell at the offer price.

lcng123

1,099 posts

Posted by lcng123 > 2019-02-27 16:45 | Report Abuse

By looking at KianJoo's yesterday financial result, I think most of shareholders will accept the offer.
Posted loss in quarter result... 1st time in the history. If not because of MGO, KianJoo share price may drop below RM2.00

sheldon

1,401 posts

Posted by sheldon > 2019-02-27 18:13 | Report Abuse

lcng123 Posted loss in quarter result... 1st time in the history. If not because of MGO, KianJoo share price may drop below RM2.00

Yes 1st time in history! What a remarkable coincidence. I expected this. The management I believe is posting a loss so as to encourage shareholders to sell & be grateful with the 3.10 offer. In accounting, it's easy to massage the figures up and down. Don't forget they have a huge amount of properties that are stated at cost. If these properties were marked-to-market the NTA will far exceed 3.30. Do it and see for yourself!!!

I advice all and sundry DON'T SELL AT 3.10!!!!! That's a very very steep discount.

lcng123

1,099 posts

Posted by lcng123 > 2019-02-28 10:05 | Report Abuse

Sheldon I advice all and sundry DON'T SELL AT 3.10!!!!! That's a very very steep discount.

If MGO unsuccessful, the price of KianJoo will go down to RM2.00 and KianJoo's future financial result will keep going -ve as what happen at this quarter

sheldon

1,401 posts

Posted by sheldon > 2019-02-28 12:38 | Report Abuse

lcng123 - If MGO unsuccessful, the price of KianJoo will go down to RM2.00 and KianJoo's future financial result will keep going -ve as what happen at this quarter.

Can-one has spent a lot of $ on investment bank fees and efforts so they probably want to ensure that it's successful.

Profits can be cooked to some extent but not cash (because KJ cannot cook $). Look at the latest cash flow from operations - RM199m! This is a lot.

Imagine a company that's been making decent profits for a long time but pay tiny dividends - Earnings exceeding dividends by far - What do you think will be the impact on its valuation? It's like eating 100 kg but defecating 40 kg. - in the long run you'll sure put on weight - likewise the company will become valuable. KJ has been doing just that for a long time and the long suffering shareholders should in all fairness be rewarded for their patience over the years. We only want our fair share - not a penny more or less.

sheldon

1,401 posts

Posted by sheldon > 2019-03-03 09:33 | Report Abuse

I'm curious to see what valuation UOB Kay Hian will give.

Are they going to tell fairy tales & dance with Can-one or be more objective about it.

Posted by lionel messi > 2019-03-03 10:46 | Report Abuse

most likely will say the usual: not fair but reasonable. what use is such advice to shareholders? for UOB, I guess it's just cari makan. after all, they are paid by Canone to help make it a success.

totally agree it's grossly undervalued. unlikely the See family and EPF will sell. wonder what will happen if they get more than 50% but less than 75% of the KJ shares? the listing will still continue?

sheldon

1,401 posts

Posted by sheldon > 2019-03-03 15:15 | Report Abuse

lionel messi - The UOB Kay Hian report is a matter of compliance to supposedly give minority an independent view. Like you I also suspect on their independence given who pays them.

I have more faith in EPF as I'm sure they have follow committee-based decisions. I actually had a chat with one of the See bros & he seemed strangely quiet about this buy-out instead of his usual style of protesting - I let you draw your own conclusions on this.

On the > 50% but less than 75%, your guess is as good as mine.

AlfI3

1,261 posts

Posted by AlfI3 > 2019-03-05 20:19 | Report Abuse

Ya agreeable to d usual comment of ' unfair but reasonable'. Is a common commentory nowadays w/in this type of mkt scenario

sheldon

1,401 posts

Posted by sheldon > 2019-03-07 10:33 | Report Abuse

Given that the properties are stated at cost, there's every possibility that if Can-one have secured way above 50% and if they have enough money, they might want to privatise the co and keep the potentially lucrative property all for themselves.

Any comments?

sheldon

1,401 posts

Posted by sheldon > 2019-03-11 13:36 | Report Abuse

So the verdict by UOB KH is "not fair (because below their valuation of 3.35) but reasonable since it's above market price. It went on to recommend that we ACCEPT the offer.

If the shareholding remains between 50 - 75%, then the Offeror intends to maintain listing status but will not take any steps to maintain public spread. It also stated that non-compliance will NOT automatically result in delisting.

Right now, all we can hope for is either 1) a better competing offer or 2) that the Offeror will make a fairer ie better offer.

sheldon

1,401 posts

Posted by sheldon > 2019-03-12 09:45 | Report Abuse

if share price trade past 3.10, then market expects that the offer price will be increased

Posted by zolasteven > 2019-03-12 15:58 | Report Abuse

If the Offerer has received sufficient shares (>75%) and intend to delist the company, will those shareholders who didnt accept the offer earlier be notified and given a chance to accept the offer (at Rm3.10) before the company is delisted? Or those shareholders will be stuck and cannot their shares anymore?

Posted by lionel messi > 2019-03-13 10:41 | Report Abuse

yes, not to worry. they will be glad to get as many shares as possible at the rip off price of RM3.10 in order to reach 90% stake when they will invoke the compulsory acquisition right.

the worrisome thing is if they get less than 75%, the See family is still a shareholder and they are not going to increase the offer price. then everything will come to standstill. KJ will remain listed and drift aimlessly, profit will continued to be artificially surpressed and little or no dividend will be declared as they don't want to benefit the See family.

unlikely Canone will increase the offer as it will be financially burdensome and also because they are hardball, stubborn and quarrelsome people.

sheldon

1,401 posts

Posted by sheldon > 2019-03-13 10:50 | Report Abuse

With KJ undervalued, Can-one may try to mine its wealth through related party transactions.

sheldon

1,401 posts

Posted by sheldon > 2019-03-15 15:52 | Report Abuse

Can-one shares doing v well. What's a loss to KJ shareholders is a gain to Can-one!

Posted by zolasteven > 2019-03-18 10:56 | Report Abuse

Surprise to see Kian Joo trading at rm3.10, same price as take-over offer price. Whats the reason?
If 3.10, better sell in the market ....can get money faster

sheldon

1,401 posts

Posted by sheldon > 2019-03-19 09:32 | Report Abuse

zolasteven Surprise to see Kian Joo trading at rm3.10, same price as take-over offer price. Whats the reason?
If 3.10, better sell in the market ....can get money faster.

Sell at 3.10, you incur transaction cost. If traded at 3.10 may imply that the offer price may be revised to > 3.10

Posted by zolasteven > 2019-03-19 17:19 | Report Abuse

If you have less than 3000 shares, the transaction charges is about the same as if you accept the offer....transfer fee of Rm10 and courier of rm6...This is the first time I see the price traded is the same as the offer price....usually is a few cents lower.
By the way, why does other people wants to buy at Rm3.10? How are they going to make a profit?

sheldon

1,401 posts

Posted by sheldon > 2019-03-20 21:48 | Report Abuse

zolasteven - By the way, why does other people wants to buy at Rm3.10?

If you read the announcement, Can-one is buying large amounts. Why? I speculate they want to get to the magical number of 90% & then forcibly takeover the balance 10% to make it wholly-owned. That means Can-one gets to pocket the full benefit of undervalued real estate.

taitaumau

275 posts

Posted by taitaumau > 2019-03-23 08:35 | Report Abuse

In scenario, where the final level of shareholdings falls between 75% and 90%:-

The offer document (1/3/19) says

" the Offeror, at this juncture, intends to request KJCFB to make the necessary application to withdraw its listing status from the Official List of Bursa Securities"

Referring to last nite announcement, the tone changes

" the Offeror may request KJCFB to make the necessary application to withdraw its listing status from the Official List of Bursa Securities pursuant to Paragraph 16.06 of the Listing Requirements."

THE SITUATION NOW - under the above scenario, the offeror is not obliged to request for withdrawal of the listing status

lachai2004

589 posts

Posted by lachai2004 > 2019-03-23 09:28 | Report Abuse

Likely, Can1 couldn't get the threshold to delist kjcfb!

Posted by lionel messi > 2019-03-23 10:41 | Report Abuse

Latest announcement from Canone says they already have more than 80% of KJoo. Now they can and will proceed for delisting, no need to reach 90%. Other dissenting shareholders on hearing this will most likely sell their shares to them because no use holding on to shares which are not listed. The 90% threshold if reached is to allow Canone to compulsory acquire all KJoo shares.

I am very surprised the See family and EPF were not able to stop this rip off exercise. Maybe they are caught between a rock and a hard place. If KJoo remain listed, it will just drift aimlessly as Canone being the people running the show will not declare dividends or report high profits to benefit the See family.

However, I suspect the See family has been buying into Canone so that they can indirectly own back KJoo. This is why the price of Canone has been surging recently. Like they say, if you cannot beat them, join them.

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