by TMR/ graphic by DYG NORAZHAR

KARAMBUNAI Corp Bhd’s controlling shareholder, Tan Sri Dr Chen Lip Keong (picture), has tabled a 11 sen cash offer to take the company private.

His offer is for the remaining 1.54 billion shares or 23.62% stake in Karambunai and 523.5 million or 51% of warrants he does not own in the hospitality and industrial group, in a deal worth about RM185 million.

Each warrant is exercisable into a Karambunai share at an exercise price of 13 sen for a period up to October 2023, Karambunai told Bursa Malaysia yesterday.

The offer price for Karambunai is at a 29% premium to its last traded price of 8.5 sen a share.

Chen also controls Hong Konglisted NagaCorp Ltd and FACB Industries Inc Bhd. He has taken Petaling Tin Bhd private.

According to Forbes, his real time net worth as of Sept 23 is US$5.5 billion (RM22.99 billion), making him sixth on Forbes list of Malaysia’s 50 Richest 2019.

Chen’s NagaWorld holds a casino licence in Cambodian capital Phnom Penh running to 2065, with a guaranteed monopoly to 2035. It is the largest casino resort in Indochina.

Naga2 opened across the street in November 2017, connected by underground NagaCity Walk mall.

NagaCorp is the first casino company listed on the Hong Kong stock exchange and the first doing business principally in Cambodia.

Forbes notes NagaCorp is also developing a casino resort in Vladivostok in Russia’s far east.

He does not sit on Karambunai’s board, but his son Yiy Fon is the non-independent ED and CEO.

Chen does not intend to maintain Karambunai’s listing status, the filing yesterday stated.

Karambunai made a loss of RM2.9 million for its first quarter ended June 30, 2019, on the back of RM13.99 million in revenue, its filing showed.

The bulk of the money was made by its leisure and tourism segment in Sabah. It is now refurbishing its resorts and hotels in stages to appeal to international travellers and business meetings.

Shares of Karambunai closed unchanged at 8.5 sen yesterday, valuing the company at RM491 million.