Sunday, 8 January 2012

Can Small Fish Eat Big Fish? Can One.

Can One's share price has surged 54% in the first 4 days of year 2012, and it will certainly go further up next week.

Can One and Kian Joo has been involved in law suit since many years ago. On 6th Jan 2012, it is reported that Can One has won the case and is allowed to complete its proposed acquisition of 32.9% or 146 million  of Kian Joo's shares at RM1.65 each (currently at RM2.20).

The story of Can One and Kian Joo dispute is summarized here.

Can One and Kian Joo are both in the same business. As of end of year 2011, Kian Joo has a market cap of RM932.7 million, while Can One is at RM157 million which is about 6 times smaller than Kian Joo. If the purchase of the controlling stake in Kian Joo is successful, then Can One will legally takeover Kian Joo.

If Kian Joo's See's brothers know this day will come, they may regret quarreling with each other.

The "take over" should not has major effect on Kian Joo's business unless the whole management is changed into a lousy one. For Can One, it will certainly boost its earning and prospect.

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