PETALING JAYA: Shares of FACB Industries Incorporated
Bhd, the parent company of Dreamland mattresses, surged by nearly 30% after the son of its late founder proposed to privatise the company.
Chen Yiy Fon is offering to buy all the shares owned by his late father, Tan Sri Chen Lip Keong, his mother and the rest of other shareholders at RM1.60 per share.
Yiy Fon, the chairman of FACB, will be forking out RM134.2mil to acquire about 83.88 million ordinary shares, excluding treasury shares.
FACB’s market capitalisation as of yesterday was RM124mil as the stock closed at RM1.46. Its net assets stood at RM233.3mil by end-March.
It is noteworthy that Yiy Fon’s father – Lip Keong – was a medical doctor-turned-billionaire casino tycoon who also founded NagaCorp, the first casino company to be listed on the Hong Kong stock exchange.
Lip Keong and his wife, Puan Sri Lee Chou Sam, collectively own nearly 31% equity interest in FACB.
Yiy Fon, who is also the chief executive officer and director of NagaCorp, made the conditional voluntary take-over offer via his private vehicle, British Virgin Islands-incorporated Magni Vantage Ltd.
He is, currently, not a shareholder of FACB.
In a filing with Bursa Malaysia, it was announced that Yiy Fon did not intend to maintain the listing status of FACB, following the takeover.
The RM1.60 offer price represents a 41.59% premium from July 18. It also represents a 45.34% premium from the five-day volume weighted average market price of FACB shares.
The offer will be open for acceptance for 21 days, unless extended.
FACB is principally engaged in the manufacturing and sale of bedding products in Malaysia and via its subsidiary and associates in China, marketing of bedding products and marketing of steam, respectively.
The bedding division in Malaysia is operated via the 85.7%-owned Restonic (M) Sdn Bhd, whose flagship brand is “Dreamland”.
In the first nine months of the financial year ending June 30, 2025, FACB’s net profit fell by nearly 31% year-on-year (y-o-y) to RM2.99mil. Revenue also declined by 29 % y-o-y to RM25.77mil.
The bedding operation in Malaysia reported lower revenue of RM24.76mil compared to RM35.17mil in the preceding year comparative period, representing a sales decrease of 30% over the period mainly due to lower consumer sales.
Associates in China recorded lower net profit, mainly due to lower operating margin.
