KUALA LUMPUR: Prominent businessman Yeoh Jin's recent attempt How to consolidate the activities of the top packs of the country can bring producers to a rocky start.
Can-One Bhd , in a complaint to Bursa Malaysia today, said Yeoh and his partners were reprimanded and fined by the Securities Commission for failing to make a mandatory general offer to purchase minority shareholders in Kian Joo Can Factory Bhd. (KJCF) after their participation in the company had risen above the 33% threshold.
For the violation of the Law on capital markets and services, the SC imposed a fine of RM455,000 on 10 December against Yeoh and parties in concert (PAC), including Can-One International Sdn Bhd (CISB).
In addition to the fine, the SC also imposed a limitation on the total number of voting rights that can be exercised by the PACs in KJCFB to no more than 33%.
"Moreover, if the proposed business exercise for which consultation with the Consumer Authority was held on 21 December 2017 is not carried out within six months of the date of the SC letter, the PACs must reduce their collective holdings in KJCFB to 33 % and lower, "it said.
Yeoh is a substantial shareholder in Can-One with a 27% interest. He is also Group Director of KJCF and his subsidiary Box-Pak (M) Bhd.
Can-One has a 32.9% stake in KJCF through CISB.
Meanwhile, in a separate application, Can-One said that CISB has proposed to acquire an additional 0.49% stake in KJCF from Tan Kim Seng for RM6.71 million or RM3.10 per share.
After completion of the intended acquisition, the interest of CISB in KJCF increases to 33.39%.
The purchased products activated an MGO for the remainder of KJCF shares on RM3.10.
"The proposed acquisition will allow Can-One and its subsidiaries to gain control over KJCF and become a controlling shareholder of KJCF," he said.
It added that the MGO is part of its expansion strategy to consolidate the production of cans under KJCF in order to increase sales and customer base, which in turn will improve the financial performance of the Can-One group.
The acquisition must be approved by the shareholders of Can-One during the next EGM of the company.