A prominent corporate honcho and MD of Kian Joo Can Factory Bhd and Box-Pax (M) Bhd Yeoh Jin Hoe has initiated the takeover of Aluminum Company of Malaysia Bhd (Alcom) after buying a 59.16% stake of the aluminium rolled products manufacturer. This is an attempt to expand his business interests in the aluminium packaging industry.
The share sale and purchase agreement was executed between Yeoh’s investment vehicle Towerpack Sdn Bhd and Novelis Inc. which is the controlling shareholder in Alcom.
Alcom said after the completion of the proposed acquisition, Towerpack's holdings of the voting shares of Alcom will increase from nil to 59.16%. Alcom disclosed that, Yeoh had also proposed to buy 79.23 million Alcom shares for RM47.72mil or 61 sen a share in an all-cash deal.
Yeoh already owns majority stakes in aluminium packaging manufacturer Kian Joo Can Factory Bhd and 54.83% in Box-Pak (M) Bhd. He is also a shareholder of Can-One Bhd with a 27% stake.
“The proposed share acquisition represents an opportunity for the offeror to venture into the business of manufacturing and trading aluminium sheets, foil products and pre-coated finstocks in a meaningful way and allows the offeror to exercise management and operational control over the business of Alcom with a view of improving its future performance,” Alcom said in its filing.
Alcom is a major supplier of finstock for many of the world’s top air-conditioner manufacturers and produces a wide range of products that are used in applications like building facades, signboards, bus bodies, utensils, lightening fixtures etc.
Alcom has a cash reserve of RM50.71mil and has zero debt, making it an attractive acquisition target. On Thursday, Alcom’s stock closed at 74 sen on light trading volume.
In its results for FY16, Alcom reported an improved net profit of RM2.57mil on the back of RM287.41mil in revenue compared with its net loss of RM1.64mil on revenue of RM279.71mil in FY15.
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