KUALA LUMPUR (July 21): FACB Industries Incorporated Bhd (KL:FACBIND) has received a privatisation offer worth RM134 million from the son of its late founder.

Chen Yiy Fon, the son of casino tycoon Chen Lip Keong, is making the offer equivalent to RM1.60 per share, according to the notice of takeover. The offer represents a 42% premium to the last price of the usually little traded stock.

FACB Industries rose as much as 29% to RM1.46, its highest since 2021, following the announcement.

Shareholders will have until August 10 to consider the conditional offer.

The offer will turn unconditional once more than half of the shareholders accept the buyout, leading to the delisting of FACB Industries as Chen would not take any steps to address any shortfall in the public shareholding spread of the mattress manufacturer.

Chen, who also sits on the board of the Hong Kong-listed gaming firm NagaCorp Ltd, is currently the managing director and a substantial shareholder of FACB Industries through private entities. He currently does not directly or indirectly own any shares in FACB Industries.

His mother Lee Chou Sarn and his late father together hold about 31% in FACB Industries and are deemed persons acting in concert with Chen under capital markets law.

Earnings at FACB Industries have softened in the past two financial years ended June. For the most recent quarter ended March 31, 2025 (3QFY2025), the company posted a net profit of RM1.7 million on revenue of RM8.98 million amid weaker bedding sales in Malaysia.