Public Bank Bhd (PBB) has proposed to privatise its 73.23%-owned subsidiary Public Financial Holdings Ltd (PFHL) by acquiring the remaining 26.77% of shares and subsequently delisting PFHL from the Hong Kong Stock Exchange (HKSE). The proposal was disclosed in a filing with Bursa Malaysia on Wednesday.
Under the plan, PBB intends to offer HK$2.50 in cash per share for each PFHL share it does not already own. This translates to a total payment of approximately HK$735 million (around RM379 million) to acquire the outstanding 293.9 million shares. With this transaction, PFHL would become a wholly-owned subsidiary of PBB.
The offer price represents a significant premium of 61.29% over PFHL’s closing share price of HK$1.55 on August 19, 2026, which was the last trading day prior to the announcement. It also exceeds the 30-day and 60-day average closing prices by 78.57% and 81.16%, respectively. However, the offer price remains substantially below PFHL’s unaudited net asset value of about HK$7.08 per share as of June 30, 2026, representing a discount of roughly 64.69%.
Public Bank highlighted that the privatisation would allow current minority shareholders to realise their investments at an attractive premium compared to historical trading levels. The bank also noted the relatively low liquidity of PFHL shares in the market; average daily trading volumes over the past year accounted for just 0.027% of total issued shares, with an average daily turnover of approximately HK$414,000. This low liquidity could make it challenging for shareholders seeking to sell large blocks of shares without impacting market prices.
According to PBB, the privatisation is expected to streamline PFHL’s ownership structure, enabling closer integration and more efficient coordination between PFHL and the broader banking group. Eliminating the listing would also reduce administrative costs and regulatory obligations, allowing greater focus on core banking operations.
PFHL’s business activities include banking and financial services, stockbroking, investment property leasing, financing for taxi and public light bus purchasers, as well as taxi trading and leasing. For the six months ending June 30, 2026, PFHL reported operating income of HK$692.22 million and net profit of HK$25.19 million.
PBB anticipates that the privatisation will be earnings accretive and positively contribute to its future earnings per share. The transaction does not require approval from PBB shareholders but is contingent on the approval of PFHL shareholders, the Supreme Court of Bermuda, HKSE, and other regulatory bodies. All approvals must be secured or waived by March 8, 2027, failing which the proposal will lapse.
Public Investment Bank Bhd has been appointed as the Malaysian principal adviser, while Quam Capital Ltd serves as the financial adviser in Hong Kong for the privatisation process.