Public Bank Bhd (PBBANK) slipped 0.20% to RM4.99 as at 10:54am on Wednesday, following the banking group’s proposal to spend about RM378.6 million to privatise its Hong Kong-listed subsidiary Public Financial Holdings Ltd (PFHL).
The stock opened at RM5.00 and traded between RM4.97 and RM5.02 during the session, with 34.153 million shares changing hands. Its previous close was RM5.00.
Public Bank is seeking to acquire the remaining 26.77% stake in PFHL that it does not already own for HK$2.50 per share in cash, bringing the total consideration to approximately HK$734.75 million.
The proposed privatisation would see PFHL become a wholly-owned subsidiary of Public Bank before its shares are withdrawn from the Hong Kong Stock Exchange.
Public Bank currently owns 73.23% of PFHL, equivalent to about 804.02 million shares, while the remaining 293.90 million shares are held by minority shareholders.
The group said the proposal would give minority shareholders an opportunity to realise their investment in cash while addressing the relatively low liquidity of PFHL shares.
The privatisation remains subject to shareholder and court approvals as well as other regulatory conditions. Public Bank has set March 8, 2027 as the long-stop date for the conditions to be fulfilled or waived, where permitted.
