Oct 12 2024, 10:17 AM, updated 2 months ago
Public Bank ( 1295 ) to acquire 44.15% stake in
LPI Capital (8621) for RM1.72 bil cash
Public Bank Bhd (1295)
| Ex-Dividend Date | Dividend | Payment Date | Yield |
| Sep 10, 2024 | 0.10 | Sep 23, 2024 | 4.17% |
| Mar 13, 2024 | 0.10 | Mar 22, 2024 | 4.41% |
LPI Capital (8621)
| Ex-Dividend Date | Dividend | Payment Date | Yield |
| Sep 04, 2024 | 0.30 | Sep 13, 2024 | 5.22% |
| Mar 11, 2024 | 0.40 | Mar 20, 2024 | 5.21% |
| **Company Name** | PUBLIC BANK BERHAD |
| **Company Registration No.** | 0006463H / 196501000672 |
| **Nature of Business** | ENGAGED IN ALL ASPECTS OF COMMERCIAL BANKING AND THE PROVISION OF RELATED FINANCIAL SERVICES |
| **Date of Registration** | 1965-12-30 |
| **State** | WILAYAH PERSEKUTUAN |
| **Company Name** | LPI CAPITAL BHD. |
| **Company Registration No.** | 0004688D / 196201000175 |
| **Nature of Business** | INVESTMENT HOLDING |
| **Date of Registration** | 1962-05-24 |
| **State** | WILAYAH PERSEKUTUAN |
| Company Name | PUBLIC ISLAMIC BANK BERHAD |
| Company Registration No. | 0014328V / 197301001433 |
| Nature of Business | ISLAMIC BANKING AND THE PROVISION OF RELATED FINANCIAL SERVICES |
| Date of Registration | 1973-07-05 |
| State | WILAYAH PERSEKUTUAN |
Oct 10, 2024
Public Bank Bhd (PBB)—Malaysia’s second-largest lender by market value—said Thursday it is buying a 44.15% stake in LPI Capital from the family of its late founder Teh Hong Piow for 1.72 billion ringgit ($400 million).
The bank will pay 9.80 ringgit for each LPI Capital share held by Teh’s family and their investment vehicle Consolidated Teh Holdings, representing a 25% discount to the last traded price of Lonpac Insurance’s parent before trading was suspended on Wednesday.
The transaction will require Public Bank to buy the rest of LPI Capital. PBB shares dropped 4.8% to 4.35 ringgit, while LPI shares slipped 3.2% to 12.58 ringgit in late morning trading on Friday in KuaLa Lumpur.
“The proposed acquisition represents an opportunity for PBB to further expand its general insurance segment through the LPI Group’s platform,” Public Bank said in a regulatory filing. The deal would also help the lender achieve its goal of becoming a universal bank offering comprehensive financial services to its customers.
Separately, the estate of PBB’s late founder (who passed away in 2022 at the age of 92) plans to sell a portion of their shares in Public Bank shares over a five-year period, his daughter, Teh Li Shian, was quoted as saying in local media reports.
The family, along with its investment firm CONSOLIDATED TEH HOLDINGS SDN. BHD. , owns about 22% stake of the bank. That accounts for the bulk of their net worth of $5.4 billion, making them the third richest family in Malaysia, according to the list of Malaysia’s 50 Richest published by Forbes Asia in April.
The late Teh Hong Piow founded Public Bank in 1966 and served as the bank’s CEO until 2002 when he was appointed chairman.
The self-made billionaire started his banking career as a clerk at Oversea-Chinese Banking Corp. in Singapore in 1950.
With our existing network of over **** 260 branches located throughout the country, ******* LPI Group would be able to leverage and expand its distribution channels and further grow its general insurance business in Malaysia. In addition, we would also be able to tap into the sales and distribution network of LPI and further expand our reach to cover clients and customers of LPI.
*******************************
At the same press conference, Teh Li Shian Diona, the youngest daughter of the late Tan Sri Dato’ Sri Dr. Teh Hong Piow also announced that the Estate and ConTeh intends to undertake a restricted offer for sale (“ROFS”) of a portion of their Public Bank Shares, progressively over a 5-year period and will be in compliance with the Financial Services Act.
*******************************
Public Bank
Diona Teh said, “My father often said that the success of Public Bank was not his alone – it is built on the trust and loyalty of its shareholders and the relentless commitment of its employees, or as he would like to call them his “corporate family”.
******* “To honour his legacy and to show our deep appreciation and gratitude, we will be undertaking an exercise to distribute a portion of our Public Bank shares at a discount to all employees, directors and eligible shareholders of the Public Bank Group.
*******
This initiative aims to ensure that Public Bank remains in the hands of those who have nurtured its growth and success over the years, enabling us to continue building our legacy together.”
She further added that, “Although we will be streamlining our stake, I would like to take this opportunity to reiterate our firm and unwavering commitment to continue as the major shareholders of Public Bank.
This is not just a role or title for us – it is an honour and a responsibility that we deeply cherish. We are devoted to upholding my father’s legacy and continuing the stewardship of this esteemed institution.”
“For this, we are deeply grateful to Bank Negara Malaysia and the Ministry of Finance for their trust in us by granting us the approval to continue helming Public Bank. With their support, we will perform our utmost best to lead Public Bank with the same passion, integrity, and vision that has defined the PBB group thus far.”
A decade later, Teh joined Malayan Banking where he rose through the ranks to become general manager at age 34.
QUOTE
According to the Financial Services Act 2013 (FSA), an individual can only hold 5 per cent in a bank, but this can be increased to 10 per cent with BNM’s approval.
Institutional investors’ stake is limited to 20 per cent, with BNM approval needed for a stake beyond that.
According to reports, Hong Piow was permitted to hold 23.4 per cent, well beyond the 10 per cent standard, due to the "grandfather rule” that states persons who have interest above the level when the FSA went into effect in 2013 are exempt from compliance.
Institutional investors’ stake is limited to 20 per cent, with BNM approval needed for a stake beyond that.
According to reports, Hong Piow was permitted to hold 23.4 per cent, well beyond the 10 per cent standard, due to the "grandfather rule” that states persons who have interest above the level when the FSA went into effect in 2013 are exempt from compliance.
Tan Sri Azman Hashim (age 85) holds three billion, nine hundred ten million, six hundred ninety thousand, thirty-one shares in AmBank Bhd, equivalent to 11.83%.
Teh was allowed to hold 23.4%, which is way above the threshold of 10%, because of the “grandfather rule”.
Under the rule, those who already had an interest exceeding the threshold when the FSA came into effect in 2013 do not need to comply with it.
QUOTE
Public Bank founder’s daughter donates RM143 mil to Tung Shin Hospital in honour of father’s legacy
14 Dec 2023
KUALA LUMPUR (Dec 14): Tung Shin Hospital received a hefty RM143 million donation from Diona Teh Li Shian, the youngest daughter of the late Tan Sri Dr Teh Hong Piow, in conjunction with his first memorial anniversary.
Besides the donation to Tung Shin, Diona also contributed RM200,000 each to Hospital Sultan Idris Shah in Serdang and ten other charities, in continuation of her father’s philanthropic legacy, according to a statement released by Public Bank Bhd, which was founded by Hong Piow.
“During his lifetime, my dad had touched countless lives. I hope that these contributions will create ripples of positivity and kindness, further spreading my dad’s enduring legacy to both the present and future generations,” she said.
The bank also commemorated the anniversary by opening the Teh Hong Piow Gallery, a space occupying two floors from
level 30 at Menara Public Bank here
, that stands as a testament to the achievements and milestones in his life and work.
During the event, Public Bank chief executive officer and managing director Tan Sri Tay Ah Lek delivered a speech, acknowledging the profound impact his late mentor had on the banking industry and the wider community.
“People do not merely follow titles; they follow passionate leaders who believe in them and inspire them to greatness,” he said.
On Dec 12, 2022, Hong Piow passed away at the age of 92. He had founded Public Bank in 1965, when he was 35 years old.
14 Dec 2023
KUALA LUMPUR (Dec 14): Tung Shin Hospital received a hefty RM143 million donation from Diona Teh Li Shian, the youngest daughter of the late Tan Sri Dr Teh Hong Piow, in conjunction with his first memorial anniversary.
Besides the donation to Tung Shin, Diona also contributed RM200,000 each to Hospital Sultan Idris Shah in Serdang and ten other charities, in continuation of her father’s philanthropic legacy, according to a statement released by Public Bank Bhd, which was founded by Hong Piow.
“During his lifetime, my dad had touched countless lives. I hope that these contributions will create ripples of positivity and kindness, further spreading my dad’s enduring legacy to both the present and future generations,” she said.
The bank also commemorated the anniversary by opening the Teh Hong Piow Gallery, a space occupying two floors from
level 30 at Menara Public Bank here
, that stands as a testament to the achievements and milestones in his life and work.
QUOTE
The highest floor in Menara Public Bank is the 36th floor.
During the event, Public Bank chief executive officer and managing director Tan Sri Tay Ah Lek delivered a speech, acknowledging the profound impact his late mentor had on the banking industry and the wider community.
“People do not merely follow titles; they follow passionate leaders who believe in them and inspire them to greatness,” he said.
On Dec 12, 2022, Hong Piow passed away at the age of 92. He had founded Public Bank in 1965, when he was 35 years old.
This post has been edited by plouffle0789: Oct 12 2024, 11:42 PM
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