The proposal involves Public Bank acquiring 175.9 million shares, with approvals already secured from Bank Negara Malaysia and the finance ministry, as of Aug 29.

At a press conference today, Public Investment Bank CEO Lee Yo-Hunn said an extraordinary general meeting will be called to seek approval from independent shareholders.

Upon completion, a general offer will follow, subject to approval by Public Bank’s shareholders.

Lee added that there will be no impact on share capital or shareholder ownership, as no new shares will be issued.

“In terms of net asset per share, the pro forma figure for Public Bank remains unchanged at RM2.82, based on last year’s audited financials,” he said.

“However, earnings per share are expected to improve from 34 sen to 35 sen under the minimum scenario and to 36 sen under the maximum scenario.”

Separately, Public Bank CEO Tay Ah Lek said the acquisition is a step towards adopting a “universal banking model” that offers a comprehensive range of financial products and services.

“The proposed acquisition represents a strategic opportunity for Public Bank to further expand its general insurance segment into the Malaysian market through the LPI Group.

“This will allow the enlarged Public Bank Group to establish an immediate market presence and a strong foothold in the general insurance segment in Malaysia as a comprehensive complementary service to its current financial services and Family Takaful offerings,” he said.

Diona Teh, the youngest daughter of the late Public Bank founder, said the bank will undertake a restricted offer for sale (ROFS) of shares over five years, in compliance with the Financial Services Act.

“We will be undertaking an exercise to distribute a portion of our shares at a discount to all eligible shareholders, directors and employees of the Public Bank Group,” she said, adding that this aims to ensure continued control and nurturing of the bank’s legacy.

She said more details on the equity streamlining initiative will be announced in the future.