Public Bank Berhad (“Public Bank”) has 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 175,896,000 shares in LPI Capital Bhd (“LPI”), representing approximately 44.15% of its equity, for RM1.72 billion.
LPI, a company listed on Bursa Malaysia, has over 60 years of experience in general insurance underwriting and operates 21 branches in Malaysia, along with operations in Singapore and Cambodia.
Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank, highlighted the strategic nature of the acquisition. “This is an opportunity for Public Bank to deepen its presence in the general insurance sector through LPI Group, enhancing our financial services and complementing our Family Takaful offerings.”
Tan Sri Tay also emphasized Public Bank’s ongoing growth strategy, which includes not just organic expansion but also strategic acquisitions. He cited the recent acquisition of Public Bank Securities Vietnam Company Limited, which expanded the group’s services in Vietnam.
“This acquisition of LPI Group, a key player in Malaysia’s general insurance market, brings us closer to our goal of becoming a universal banking institution. LPI can leverage Public Bank’s extensive network of over 260 branches across Malaysia to grow its business, while Public Bank can tap into LPI’s client base,” Tay added.
The acquisition will require approval from Public Bank’s non-interested shareholders in an upcoming Extraordinary General Meeting (EGM). If approved, Public Bank will be required to extend a mandatory take-over offer for the remaining LPI shares. The acquisition has already secured approvals from the Ministry of Finance and Bank Negara Malaysia, with completion expected in Q1 2025.
At the same press conference, Teh Li Shian Diona, the youngest daughter of the late founder, announced that the Estate and ConTeh would gradually sell a portion of their Public Bank shares over five years, as per the Financial Services Act. The family plans to offer shares at a discount to employees, directors, and shareholders as part of a broader initiative to honor her father’s legacy.
Diona reiterated the family’s commitment to Public Bank: “We may streamline our stake, but we remain devoted as major shareholders. This is not just a role but a responsibility we cherish, and we will uphold my father’s legacy with the same integrity and passion.”
She also expressed gratitude to Bank Negara Malaysia and the Ministry of Finance for their continued trust, pledging to lead Public Bank with dedication and vision.
