Karambunai Corp Bhd’s largest shareholder, Tan Sri Dr. Chen Lip Keong is planning to privatize the company in a deal worth an estimated RM184.7 million (US$44.2 million), local media reports.
According to the company’s website, Karambunai is an integrated company involved in the tourism industry in Sabah, Malaysian Borneo and other parts of Malaysia.
The company most notably owns 1,500 acres of prime tourism property in Kota Kinabalu, Sabah. The company’s chief executive officer is the son of Dr. Chen, Mr. Chen Yiy Fon.
Karambunai told Bursa Malaysia in a filing on Monday that has received an unconditional voluntary takeover offer from UOB Kay Hian Securities (M) Sdn Bhd on behalf of Mr. Chen to acquire the remaining 1.54 billion shares or 26.59 percent interest in the company.
Dr. Chen, who is also the CEO and owner of Hong Kong-listed NagaCorp is already the largest shareholder of the company.
It is also understood that Chen intends not to maintain Karambunai Corp’s listing on the stock exchange.