PETALING JAYA: Can-One Bhd has accepted the offer to sell its subsidiary F&B Nutrition Sdn Bhd for up to RM1 billion to Asia Dairy Creations Sdn Bhd, a special purpose vehicle managed by Southern Capital Group Private Limited.
In a filing with Bursa Malaysia, Can-One said that its board of directors has deliberated on the offer and has accepted the offer based on the terms and subject to the conditions set out in the term sheet.
The offer is subject to a definitive agreement and other ancillary agreements being entered into between Can-One and Asia Dairy Creations within 30 days from the date of the acceptance of the offer.
Earlier on Monday, Can-One received the offer from Asia Dairy Creations for the purchase of the entire issued share capital of F&B Nutrition at an indicative consideration of between RM800 million to RM1 billion.
F&B Nutrition is involved in manufacturing of dairy and non-dairy products and is an original equipment manufacturer of sweetened creamer and evaporated creamer. It is 20%-owned by Can-One while the remaining 80% is held by Amber Alliance Sdn Bhd, a wholly owned subsidiary of Can-One.
Pursuant to the term sheet, the consideration will be an amount equal to the normalised and recurring earnings before interests, tax, depreciation and amortisation of F&B Nutrition for the financial year ending Dec 31, 2019 multiplied by 10.5, and less the net debt of F&B Nutrition which will be defined in the definitive agreements.
RHB Investment Bank Bhd has been appointed as the principal adviser to the company.
