KUALA LUMPUR (Oct 8): Trading in the securities of Public Bank Bhd (KL:PBBANK) will be suspended from 9am on Wednesday (Oct 9), pending a material announcement.
The trading halt follows a report by The Edge, which cited sources, indicating that a potential acquisition involving a related company is underway at Public Bank. While the specific company involved remains unclear, industry insiders speculate the development could relate to LPI Capital Bhd (KL:LPI).
Subsequently, trading in LPI Capital shares will also be suspended effective 9am on Wednesday, according to Bursa Malaysia.
Public Bank shares were last traded at RM4.57 on Tuesday, up one sen or 0.22%, giving the country's third-largest banking group by assets a market capitalisation of RM88.71 billion. Meanwhile, shares in LPI Capital settled 22 sen or 1.72% higher at RM13, valuing the company at RM5.18 billion.
LPI Capital, listed on the Main Market, fully owns Lonpac Insurance Bhd, a prominent general insurance provider in Malaysia.
As of Jan 24, 2024, LPI Capital's largest shareholder, Consolidated Teh Holdings Sdn Bhd, held a 42.74% stake, or 170.27 million shares, in the company.
Consolidated Teh Holdings is the private investment vehicle of the late Tan Sri Teh Hong Piow, the founder of Public Bank, who passed away in December 2022.
Teh also held a direct 1.31% stake in LPI Capital. Sompo Japan Insurance Inc is another major shareholder with a 7.76% stake.
Over at Public Bank, its biggest shareholder is Consolidated Teh Holdings with a direct holding of 21.64%. Based on the bank’s latest annual report that cited shareholding data as at Feb 29, the estate of the late Teh held a direct 0.64% stake in the bank but a total interest of 23.41%. LPI Capital held a direct 1.1% stake in the lender.
Lonpac is LPI Capital’s operational arm for the group’s insurance activities in Malaysia and Singapore. In Cambodia, LPI Capital has a 45% stake in Campu Lonpac Insurance plc.
Public Bank also holds a 30% stake in AIA Public Takaful Bhd.
Public Bank is expected to hold a press conference on Friday, Oct 11, as indicated in a media invitation sent out on Tuesday.