Selldown of 220.3 million PBBANK shares by LPI Capital Bhd

LPI Capital Bhd has completed the disposal of its remaining shares in Public Bank Berhad (PBBANK) to local and foreign institutional investors, selling 220.3 million shares for RM1.05 billion. This stake represents a 1.1% of PBBANK’s total share capital.

The shares were disposed of at RM4.75 each, being 0.42% discount to PBBANK’S closing price of RM4.77 on May 20, 2026. It is 2.08% discount to the five-day volume weighted average (VWAP) price of RM4.851 up to and including May 20.

Following completion of the exercise, LPI and Lonpac no longer hold any shares in PBBANK.

The disposal was carried out in compliance with regulatory requirements under Section 22(5)(b) of the Financial Services Act. On completion of the disposal, LPI Capital and subsidiary Lonpac Insurance no longer hold shares in PBBANK thereby satisfying the cross-shareholdings restrictions between subsidiaries and parent companies.

For LPI Capital, the disposal mandate outlined that approximately 70% of the gross proceeds would be earmarked to reward shareholders of as special cash dividends. The remaining balance of the proceeds will be retained to support the company’s investment portfolio and future business growth.

Selldown of 50 million shares by Consolidated Teh

Further to their announcement on 10/10/24, the Estate of the late Tan Sri Teh Hong Piow (via Consolidated Teh Holdings Sdn Bhd) has announced the disposal of 50 million shares (0.26%) in Public Bank Bhd. The date of change was shown as 8/10/25. The Teh family still holds over 22% of the banking group after the sell down. The family is required to gradually reduce its stake to 10% within five years through a restricted offer for sale (ROFS) to comply with the Financial Services Act. Which means it still needs to sell down well over 2 billion shares over the next 4 years or over 500 million shares each year on average.

Public Bank shares closed at RM4.34 on 8/10/25 with 4.9 million shares traded at a range of RM4.31 to 4.34.

Goodwill Impairment for Public Bank

Public Bank Bhd’s upcoming Q4 results, scheduled for release on 26/2/25, are expected to reflect the financial impact of the goodwill impairment at its 73.2%-owned subsidiary, Public Financial Holdings (PFH), which had recorded a goodwill impairment on its wholly owned subsidiaries, Public Bank (HK) Ltd, Public Finance Ltd, and Winton (BVI) Ltd. The impairment was approximately HK$810 million or RM463 million.

(Source: TheEdge)

Public Bank Completion of LPI Acquisition

Public Bank (PBB) completed its acquisition of a 44.15% stake in LPI Capital (LPI) in December 2024, acquiring it from the estate of Tan Sri Teh Hong Piow and his private vehicle, Consolidated Teh Holdings Sdn Bhd. This acquisition was for a total of RM1.72 billion in cash, or RM9.80 per share. As a result, PBB now holds a controlling stake* in LPI.

Key Details:
Acquisition: PBB acquired a 44.15% stake in LPI Capital.
Value: The acquisition was valued at RM1.72 billion in cash, or RM9.80 per share which is 1.71x LPI’s book value and 12.4x 2023 earnings.
The stake was acquired from the Estate of Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd.
LPI share price closed at RM13.14, while PBB at RM4.53 at completion of the acquisition on 4/12/25.

Consequences of the Acquisition:

• Public Bank now holds a controlling stake in LPI, giving it greater influence over its operations.
• As a subsidiary of Public Bank, LPI is required to dispose of its 1.1% stake in PBB within 12 months due to the acquisition. 
• The sale of Public Bank shares by LPI could potentially lead to special dividends for LPI shareholders, some estimates suggest RM1.89 per share.
• The acquisition aligns with PBB’s strategy to enhance its presence in the insurance sector through LPI, a leading general insurer in Malaysia.
• Some analysts expect the acquisition to be earnings accretive for Public Bank, potentially boosting group earnings by around 2%

*PBB considers that it controls LPI Capital Bhd (“LPI”) even though it owns less than 50% of the voting rights. This is because the Group is the single largest shareholder of LPI with a 44.15% equity interest. The remaining 55.85% of the equity shares in LPI are widely held by many other shareholders, none of which individually hold more than 10% of the equity shares (as recorded in the company’s shareholders’ register on 4 December 2024. Since the date of acquisition of LPI on 4 December 2024, there has been no history of the other shareholders collaborating to exercise their votes collectively or to outvote the Group.

Source: Public Bank Berhad 2024 Integrated Annual Report Financial Statements P39.

Public Bank Acquisition of Lonpac and Teh Family Divestment

On 10/10/24 it was reported that Public Bank Bhd would acquire 44.15% stake in LPI Capital for RM1.72bil by launching a Mandatory General Offer for LPI at RM9.80/share.

Teh Li Shian Diona, daughter of the late Tan Sri Dr Teh Hong Piow also announced that the Estate and Consolidated Teh Holdings Sdn Bhd intended to undertake a restricted offer for sale of a portion of their Public Bank shares over a 5-year period, in compliance with the Financial Services Act. The acquisition of 44.15% in LPI Capital (175.9 million shares) was completed on 4/12/24.

To honour the late founder’s legacy and in appreciation to key stakeholders, Consolidated Teh will divest a portion of its Public Bank shares at a discount to all employees, directors and eligible shareholders of the Public Bank Group. According to Diona Teh, “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,” 

(Source: TheStar, TheEdge)