Public Bank Berhad (KLSE:PBBANK) signed a Conditional sale and purchase agreement to acquire 44.15% stake in LPI Capital Bhd (KLSE:LPI) from Consolidated Teh Holdings Sdn Berhad and Estate of the Late Tan Sri Dato' Sri Dr. Teh Hong Piow for approximately MYR 1.7 billion on October 10, 2024. As part of consideration, a total cash of MYR 1.72 billion or MYR 9.80 per Sale Share in relation to the Proposed Acquisition is paid towards 175,896,000 LPI Shares, representing 44.15% equity interest of LPI Capital Bhd. The Purchase Consideration was arrived at on a willing-buyer willing-seller basis. Upon completion, Public Bank Berhad intends to maintain the listing status of LPI on the Main Market of Bursa Securities.

The transaction is subject to approval by Bank Negara Malaysia and Ministry of Finance, Malaysia, which were obtained via Bank Negara Malaysia's letter dated 29 August 2024, approval of offer by acquirer shareholders and the approval/consent of relevant authorities and 3rd parties (including financiers) for the transfer of the Sale Shares by the Vendors to the Purchaser. The Board having considered all aspects of the Proposals, including the rationale and benefits, the salient terms of the SPA, the basis and justification of arriving at the Purchase Consideration, and the future prospects of the enlarged PBB Group, is of the opinion that the Proposals are in the best interest of our Group. Accordingly, the Board recommends that you vote in favour of the resolution pertaining to the Proposals to be tabled at the forthcoming EGM. In a related transaction, on the SPA becoming unconditional, PBB Group will be obliged to extend a conditional MGO to acquire the Offer Shares at the Offer Price of RM9.80 per Offer Share. The Proposed Mandatory General Offer will also be extended to PACs, as allowed under the Rules. The Proposed Acquisition and Proposed MGO will be funded via internally generated funds. The Audit Committee of Public Bank Berhad, after having considered all aspects of the Proposals, including but not limited to the rationale and benefits, the terms of the SPA as well as the evaluation of the Independent Adviser is in the best interest of our Group; fair, reasonable and on normal commercial terms; and detrimental to the interest of the Non-Interested Shareholders of PBB. The transaction is expected to complete this corporate exercise in the 1st quarter of 2025. As of December 2, 2024, Public Bank Berhad bought 175,896,000 existing LPI Shares, pursuant to the SPA.

Public Investment Bank Berhad acted as financial advisor; AmInvestment Bank Berhad acted as independent financial advisor and fairness opinion provider. Tricor Investor & Issuing House Services Sdn Bhd acted as registrar for Public Bank Berhad.

Public Bank Berhad (KLSE:PBBANK) completed the acquisition of 44.15% stake in LPI Capital Bhd (KLSE:LPI) from Consolidated Teh Holdings Sdn Berhad and Estate of the Late Tan Sri Dato' Sri Dr. Teh Hong Piow on December 2, 2024. Following the completion of the Acquisition, Public Bank Berhad?s shareholdings in LPI has increased from nil to 175,896,000 LPI Shares, representing approximately 44.15% of the total issued shares of LPI. The Acquisition has been completed following the crediting of the Sale Shares into the Purchaser?s securities account.