- The Estate of the Late Tan Sri Dato' Sri Dr. Teh Hong Piow and Consolidated Teh Holdings Sdn. Bhd. to streamline their equity position and remain as major shareholders of Public Bank

Public Bank Berhad (“Public Bank”) had on 10 October 2024 entered into a conditional sale and purchase agreement (“SPA”) with the Estate of the Late Tan Sri Dato’ Sri Dr. Teh Hong Piow (“Estate”) and Consolidated Teh Holdings Sdn. Bhd. (“ConTeh”) to acquire in aggregate 175,896,000 ordinary shares in LPI Capital Bhd (“LPI”), representing approximately 44.15% equity interest in LPI, for a total cash consideration of RM1.72 billion (“Proposed Acquisition”).

LPI, a company listed on the Main Market of Bursa Malaysia, has been in operations for over 60 years and is mainly involved in the underwriting of general insurance. It currently has 21 branches throughout Malaysia, 1 branch in Singapore and also operates in Cambodia through an associate company.

Speaking at the press conference after the SPA signing ceremony, Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and Chief Executive Officer of Public Bank said, “The Proposed Acquisition represents a strategic opportunity for Public Bank to further expand its general insurance segment into the Malaysian market through the LPI Group. This will allow the enlarged Public Bank Group to establish an immediate market presence and strong foothold in the general insurance segment in Malaysia as a comprehensive complementary service to its current financial services and Family Takaful offerings.”

He further added that, “The Proposed Acquisition is also in line with our Group’s plans to expand beyond just organic growth but through strategic acquisitions to expand our product and service offerings as evident by our recent completion of the acquisition of Public Bank Securities Vietnam Company Limited which allowed our Group to expand our financial services offering in Vietnam with the inclusion of securities trading services.”

Tan Sri Tay concluded by saying, “This strategic acquisition of LPI Group, a long-established and leading general insurance player in Malaysia, represents a clear and unique opportunity for us to accelerate our vision to move towards a “Universal Banking Model” that offers comprehensive and diverse range of financial and other related products and services under the same group.

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.

Aside from the mutual cross selling of products and services, Public Bank and LPI will also explore possibilities on developing new integrated products and services catering to our customers’ financial and insurance needs.”

As this is a related party transaction, the Proposed Acquisition is subject to the approval of the non-interested shareholders of Public Bank at an Extraordinary General Meeting (“EGM”) to be held at a later date. Should the Proposed Acquisition be approved at the EGM, Public Bank will be obliged to extend an unconditional mandatory take-over offer (“MGO”) (“Proposed Offer”) for the remaining equity interest in LPI not already owned by it.

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