In a report citing two sources with knowledge on the matter today, Reuters said Quek Leng Chan, who holds a substantial interest in the banking group, is weighing several options, including reducing his stake in the lender.

Quek, 80, controls conglomerate Hong Leong Financial Group Bhd, which holds a 62% stake in Hong Leong Bank.

According to the report, it was not immediately clear if Quek had shortlisted candidates for a possible merger or how much of his stake he would sell.

“A potential merger may herald consolidation in the Malaysian banking sector at a time when a handful of digital banks are preparing to launch their services in the country,” the report said.

However, the sources stressed that there still was no formal proposal and neither has Quek made any decision.

Reuters also quoted the sources as saying that the move by Quek to consider his possibilities came as the bank’s share price has risen sharply this year and he is considering the succession issue.

The share price hit a record high in June, having recovered from a five-month low in November.

Forbes magazine had, earlier this year, estimated that Quek is worth US$10 billion (RM44 billion), making him the second richest man in Malaysia after property tycoon Robert Kuok.

Reuters, citing the two sources again, reported that any potential selldown by Quek would be for a minority stake.