Public Bank Bhd has proposed to take its Hong Kong-listed subsidiary, Public Financial Holdings Ltd (PFHL), private by purchasing the remaining shares it does not already own for HK$2.50 (RM1.29) per share.
Public Bank currently holds a 73.23% stake in PFHL and plans to acquire the remaining 26.77%, representing approximately 293.9 million shares, for a total of HK$734.75 million.
According to a filing with Bursa Malaysia, the bank confirmed that the offer price is final and will not be increased.
The proposed privatisation will be carried out through a court-approved arrangement, under which shares held by minority shareholders will be cancelled and replaced with new shares issued to Public Bank. Once completed, PFHL will become a wholly-owned subsidiary of Public Bank.
The HK$2.50 offer represents a 61.29% premium over PFHL’s last traded share price of HK$1.55 on 19 August 2026. It is also 83.82% higher than the company’s average closing price of HK$1.44 over the previous 360 trading days.
However, the offer price is 64.64% below PFHL’s unaudited net asset value of HK$7.08 per share as of 30 June 2026.
Trading in PFHL shares has been suspended since 20 August, pending the announcement.
PFHL operates several financial businesses, including banking, stockbroking, investment property leasing and vehicle financing. Its banking operations cover 29 branches in Hong Kong and one branch in China.
Public Bank said the proposal provides minority shareholders with an opportunity to sell their shares at a premium, particularly as PFHL’s shares have historically traded at significant discounts to their book value.
The bank added that taking PFHL private would help reduce listing expenses, simplify the group’s corporate structure and allow greater focus on its core banking operations.
It also expects the move to contribute positively to future earnings.
For the first six months ended 30 June 2026, PFHL recorded a net profit of HK$25.19 million, compared with HK$2.57 million during the same period last year.
Operating income increased slightly to HK$692.22 million from HK$685.16 million.
For the financial year ended 31 December 2025, PFHL returned to profitability with a net profit of HK$79.65 million, reversing a net loss of HK$999.39 million in 2024.
The proposed privatisation remains subject to several conditions, including approval from at least 75% of the votes cast by eligible minority shareholders at a court-convened meeting.
Meanwhile, Public Bank shares closed unchanged at RM5, valuing the banking group at approximately RM97.05 billion.
The proposed acquisition is expected to strengthen Public Bank’s control over its Hong Kong operations while supporting its long-term business growth and operational efficiency.
