KUALA LUMPUR: Public Bank Bhd has proposed to acquire a strategic stake of 44.15 per cent equity interest in LPI Capital Bhd from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd for RM1.72b.
Public Bank will make a mandatory general offer for the remaining shares in the company after completing the deal.
Public Bank said it intends to maintain the listing status of LPI on the Main Market of Bursa Securities.
Managing director and chief executive officer Tan Sri Dr Tay Ah Lek said the deal will allow the group to establish an immediate market presence and a strong foothold in the general insurance segment in Malaysia.
He added that the proposed acquisition will provide a comprehensive complementary service to its current financial services and family takaful offerings. "We are not only enhancing our portfolio, but also positioning ourselves to capitalize on new opportunities that this proposed acquisition may unlock. "This will provide more products and services to our customers and deliver enhanced value for all our stakeholders. "This proposed acquisition is also in line with our group's plans to expand beyond just organic growth, but through strategic acquisitions," he said at the signing ceremony of the proposed acquisition here today.
Trading in Public Bank and LPI Capital's shares were suspended for two days pending the announcement.
Public Bank last traded at RM4.57 a share, while LPI Capital last traded at RM13 a share.
Trading in both stocks will resume on Friday.