Saturday, November 9, 2024

Public Bank Is Said to Consider Buying Late Founder’s Family Stake in LPI

Must read

(Bloomberg) — Public Bank Bhd. is considering buying its late founder Teh Hong Piow’s family stake in the owner of Lonpac Insurance Bhd., people familiar with the matter said.

Most Read from Bloomberg

Malaysia’s second-biggest lender by market value is expected to pay in cash and shares for Consolidated Teh Holdings Sdn.’s nearly 43% stake in LPI Capital Bhd., the people said, asking not to be identified as the information isn’t public.

A potential deal would trigger a buyout of the remainder of LPI, one of the people said. Public Bank wants to acquire the insurer as it aims to be a fully fledged universal bank, offering a variety of financial services, the person said.

LPI’s shares have risen about 9% this year, giving the company a market value of 5.2 billion ringgit ($1.2 billion). Public Bank has advanced 6.5% to a value of 88.7 billion ringgit.

Public Bank and LPI both asked for trading to be suspended in Kuala Lumpur on Wednesday pending an announcement, which the people said could come as soon as this week.

LPI declined to comment. Public Bank also declined to comment, other than saying it is scheduled to hold a briefing Thursday.

Founded in 1962 as London & Pacific Insurance Co., LPI is an investment holding company. It adopted its present name in 1999 after transferring its insurance business to subsidiary Lonpac, according to its website.

Public Bank, established in 1966, has 293 branches in Malaysia and 157 overseas, and total assets of about 493 billion ringgit, its website shows. Teh died in 2022, aged 92.

–With assistance from Joy Lee.

(Updates with response from Public Bank in sixth paragraph.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

Latest article