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.

It is pertinent to note that Public Bank has received the approval from the Ministry of Finance and Bank Negara Malaysia for the Proposed Acquisition and is expected to complete this corporate exercise in the 1st quarter of 2025.

Barring any unforeseen circumstances, the Proposed Acquisition is expected to be value accretive and contribute positively to the future earnings of the Public Bank Group.

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.

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.”

Issued By: Swan Consultancy Sdn. Bhd. on behalf of Public Bank Berhad

For more information, please contact:
Xinyi Ching
Email: x.ching@swanconsultancy.biz