Public Bank offers RM1.29 a share to take Hong Kong listed unit private
KUALA LUMPUR: Public Bank Bhd is proposing to privatise its 73.23 per cent-owned Hong Kong-listed subsidiary Public Financial Holdings Ltd at HK$2.50 (RM1.29) a share via a scheme of arrangement.
Public Bank Bhd has proposed to privatize its 73.23% stake in Hong Kong-listed Public Financial Holdings Ltd (PFHL) at a price of RM1.29 per share. This cash offer costs Public Bank approximately HK$734.75 million to acquire the remaining 26.77% stake, or 293.9 million shares. The offer price is 61.29% higher than PFHL's closing price on the last trading day before the announcement, and 83.82% higher than its average daily closing price over the past year.
However, the offer is 64.64% lower than PFHL's unaudited consolidated net asset value of HK$7.08 per share as of June 30. PFHL's businesses include banking, financial services, stockbroking, investment property leasing, and leasing for taxi and public light-bus purchases, among others. Public Bank aims to simplify PFHL's ownership structure and streamline operations by taking the subsidiary private, allowing more resources to be allocated to its banking operations.
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