On 19th April, The Star Biz reported that Can One confirmed that Kumpulan Wang Persaraan (KWAP) has made an offer to buy 30% stake of Can One’s wholly owned subsidiary F & B Nutrition Sdn Bhd. for Rm 280 million.
Basing on this deal, F & B Nutrition Sdn Bhd is worth Rm 933 million.
On 15th April 2016, MIDF Investment, on behalf of the Company, wishes to announce that:
(1) the Company has engaged with Aspire for a better price for the Proposed Disposal in view of the improved performance of Kian Joo Group over the past two financial years. However, the Company and Aspire could not come to a conclusion in respect of the price. The conditions precedent in the BSA were not completely fulfilled as it took the Company more than a year to resolve the legal suit taken by a former Director in relation to the BSA and by then, the valuation of the Company is different from that of March 2014; and
(2) the termination of the BSA and its ancillary agreements will have no impact of the earnings per share and the net asset per share of Kian Joo Group.
On this news, Kian Joo’s share price went up a few sen.
Basing on Kian Joo’s current share price of Rm 3.26 per share, the market cap of the company with 444.17 million issued shares is Rm 1,448 million.
Can One’s 32.9 % ownership of Kian Joo is worth Rm 476 million.
Plus the valuation of Can One’s F & B Nutrition Sdn Bhd of Rm 933 million, the total of these 2 holdings is Rm 1,409 million.
The whole market capitalization of Can One is only 192.15 million issued X Rm 4.06 = Rm 780 million.
It is so much undervalued.
Dude has posted one of the most comprehensive articles on Can One on 14th Feb 2016, I have ever seen on i3investor which you must see.
http://klse.i3investor.com/blogs/rarecharms/91402.jsp
http://klse.i3investor.com/blogs/rarecharms/93026.jsp
You need more than FA & TA to be able to spot Can One. You need to have the mind of an entrepreneur.
For some strange reason Kian Joo contributed less profit to Can One in the last quarter. As a result its share price has fallen from Rm 5.05 to Rm 4.05, selling at P/E below 10.
When I bought this stock, I wished the company was delisted so that I would not have to look at its price fluctuation and be tempted to sell to realise some profit.
I am obliged to inform you that I am a substantial shareholder and if you buy, you are doing it at your own risk.
CANONE (5105) - Can One News - Koon Yew Yin
http://klse.i3investor.com/blogs/koonyewyinblog/95120.jsp
