Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 23): Karambunai Corp Bhd’s largest shareholder Tan Sri Dr Chen Lip Keong, who holds 73.41% stake in the company, intends to take Karambunai private in a deal worth an estimated RM184.67 million.

Karambunai told Bursa Malaysia in a filing today that it has received an unconditional voluntary takeover offer from UOB Kay Hian Securities (M) Sdn Bhd on behalf of Chen to acquire the remaining 1.54 billion shares or 26.59% interest in the company not already held by him, at a cash price of 11 sen per share. He is also offering 3 sen apiece for the remaining 523.5 million warrants, representing 51.57% of the outstanding warrants he does not hold.

Notwithstanding the fact that he is the largest shareholder of Karambunai, Chen does not sit on Karambunai's board. His son Chen Yiy Fon, however, is Karambunai's non-independent executive director and chief executive officer.

The gaming tycoon, better known as founder of Hong Kong-listed NagaCorp Ltd, also has another indirect stake of 339.18 million or 5.87% in Karambunai held via FACB Industries Incorporated Bhd (FACBII), by virtue of him being a major shareholder of FACBII, who is the person acting in concert (PAC) with him in the offer.

"For avoidance of doubt, the offer shall extend to the offer securities held by the PAC," the offer notice read.

According to the offer notice, the offer price of 11 sen is a premium of 29.4% to Karambunai's last transacted price of 8.5 sen as at Sept 20, as well as to its five-day volume weighted average market price, which was also 8.5 sen. It also represents an 18.3% premium to Karambunai's three-month volume weighted average market price of 9.3 sen.

As Chen does not intend to maintain Karambunai's listing status, he will not address any shortfall in the company's public shareholding spread, which currently stands at 20.72%, on the close of the offer.

Shares of Karambunai closed unchanged at 8.5 sen today, valuing the company at RM491.01 million. Over the past 52 weeks, the stock has been trading between 8 sen and 13 sen.

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