According to the UNKNOWN sources, a DEAL is BELIEVED to happen....
The share soars on the news.
Company denies the story. Share plunges.
Rinse... Wash... and REPEAT!
Yeah, babe.... nothing wrong here... just our local singing out these market sources songs.... and the market dances to the tune....
Very fun... and who knows.... who is making and who is losing money out of such spins.
Another day.... in our local stock market.
Check this out: Box-Pak awakened by possible takeover? (from the Edge Malaysia)
- Box-Pak awakened by possible takeover?
Thursday 29 December 2011
KUALA LUMPUR: Shares of usually sleepy paper box and carton-maker Box-Pak (M) Bhd gained over a third in two days to hit its highest in 14 years yesterday, even as industry sources speak of a potential acquirer.
Tokyo and Osaka-listed Oji Paper Co Ltd (Japan), Japan’s largest paper company by sales, is believed to be the offeror, market sources said.
Box-Pak officials were not available for comment at press time.
Adding 37 sen or 17.6% to close at its day-high of RM2.47 yesterday, Box-Pak gained 33.5% in the two days after the Christmas weekend. The 2.81 million Box-Pak shares that changed hands yesterday were roughly 10 times the 30-day average volume of 284,950 shares and 100 times its five-year daily average volume of 26,700 shares.
Market watchers see Oji Paper — which has bought three Malaysian paper-related companies since 2010 — Genting Sanyen Industrial Paper, United Kotak Bhd, and HPI Resources Bhd — as a likely suitor for Box-Pak.
An offer may come through its wholly-owned Malaysian arm, Oji Paper Asia Sdn Bhd (OPA), the investment holding vehicle that acquired both United Kotak and HPI Resources, one source said.
To recap, Oji Paper in March last year bought 100% of Genting Sanyen Industrial Paper, a paper and packaging company that was formerly part of the Genting group, from private equity firm CVC Asia Pacific for an undisclosed amount.
December last year, OPA acquired United Kotak for RM1.40 per share at 10.9 times price- earnings ratio (PER) and one times price-to-book value (P/BV). In June this year, OPA offered RM4.40 per share for HPI Resources, which translates to 1.48 times book and 8.82 times earnings.
In comparison, Box-Pak’s closing price of RM2.47 yesterday values the company at 9.98 times PER and 1.32 times P/BV. Net assets per share stood at RM1.87 as at Sept 30.
According to Box-Pak’s FY10 annual report, Kian Joo Can Factory Bhd is its largest shareholder with a 54.83% stake, followed by Amanahraya Trustees Bhd with 5.16%. Kian Joo’s shares rose five sen or 2.42% to RM2.12 yesterday, up 31.4% year-to-date.
OPA did not appear to hold any shares in Box-Pak at the time of writing.
OPA’s conditional takeover offer for United Kotak came on Oct 12 last year, but not before the latter’s share price rose 66.6% from an average price of 73 sen in June 2010 to RM1.22 by Sept 30. Similarly, HPI Resources’ share price jumped 27.18% from RM3.09 to RM3.93 in one week leading up to OPA’s offer on June 15.
Notably, though, a July 13 report by The Edge Financial Daily that paper milling and packaging firm, Muda Holdings Bhd, could be Oji Paper’s next takeover target, was denied by Muda the same day.
- Box-Pak shares soar on talk of privatisation
By Zaidi Isham Ismail Published: 2011/12/29
Kian Joo Can Factory Bhd is planning to privatise subsidiary Box-Pak (Malaysia) Bhd under a multimillion ringgit deal that will involve certain Japanese firms, sources say.
Kian Joo would pay RM3.20 a share for the remaining shares it does not own in its profitable corrugated carton boxes manufacturing unit, they said.
Meanwhile, Box-Pak shares were the second top gainer on Bursa Malaysia yesterday. The stock soared 37 sen to close at RM2.47 with 2.81 million shares traded. At RM2.47, its market capitalisation stood at RM148.26 million.
Year-to-date, Box-Pak has gained 107.56 per cent or RM1.28, with a low of RM1.09 on March 16 this year. Kian Joo Can owns 32.91 million shares, or a 54.83 per cent stake, in Box-Pak. Another single largest shareholder is Amanah Saham Bumiputera Bhdwith 3.1 million shares or a 5.16 per cent stake.
The sources said Kian Joo Can had hired Maybank Investment Bank Bhd to handle the privatisation deal. Kian Joo Can executive director Datuk Anthony See Teow Guan, when contacted yesterday, denied that it was planning such privatisation.
“No, there’s no truth in it. I don’t know who spread the rumours,” said See, who is also managing director of Box-Pak.
Besides corrugated carton boxes, Box-Pak also manufactures and sells die-cut trays, wrap-around cartons, Point of Purchase (POP) and paper palette for use in the packaging industry.
The company was incorporated in December 1974 and listed on the local bourse on July 18 1996. Box-Pak nearly doubled its net profit in the first nine months ended September 30 2011 to RM10.35 million, from RM5.79 million net profit a year ago.
The company attributed the improved profit to higher revenue and better production efficiency. Group revenue rose to RM178.39 million during the period, up from RM134.73 million previously..
- Friday December 30, 2011
Box-Pak plunges on denial
By CHOONG EN HAN
PETALING JAYA: Box-Pak (M) Bhd's shares plunged 24 sen, or 9.7%, to RM2.23 after its parent Kian Joo Can Factory Bhd refuted media reports that a potential privatisation involving its subsidiary might be on the table.
Shares of the paper box and carton maker reached an intra-day high of RM2.65 in the first trading session and pared its gains in the second session to reach a low of RM2.21 after Kian Joo's denial, with 5.35 million shares traded. Box-Pok was second on yesterday's list of top losers.
In their filings with Bursa Malaysia, both Kian Joo and Box-Pak said they were not aware of any formal discussions concerning the privatisation of Box-Pak.
Kian Joo also refuted allegations that it has hired any investment bank in relation to the said exercise.
A report citing unnamed sources said Kian Joo would pay RM3.20 a share for the remaining shares it does not own to privatise Box-Pak, with the involvement of a Japanese firm.
Kian Joo owns 54.83% of Box-Pak, followed by Amanahraya Trustees Bhd with a 5.16% stake.
Meanwhile, another report speculated that Tokyo and Osaka-listed Oji Paper Co Ltd is believed to be a potential offerer to acquire Box-Pak.
“As far as we know, nothing is happening yet. The only guidance from Japan's Oji is that they will not stop buying assets in Malaysia when the opportunity presents itself,” an industry source said.
Oji Paper was founded in Japan in 1873 as Shoshi Kaisha and was renamed Oji Paper in 1893. Its core business includes the sale of pulp, paper and paperboard such as newsprint, printing and writing papers, speciality papers, container boards and box boards.
In July, it was speculated that Oji Paper is interested in acquiring paper milling and packaging firm Muda Holdings Bhd, which was denied by the company on the same day.
Over the past two years, Oji Paper has been on a shopping spree, snapping up several Malaysian paper-related companies Genting Sanyen Industrial Paper, United Kotak Bhd and HPI Resources Bhd.
Notably, Oji Paper took over packaging product maker HPI Resources in June for RM258mil while it bought into corrugated carton maker United Kotak for RM63mil in February.
Told you so!
Told you so that the stock market game is sooooooooooooo fun!