Teh Family To Reduce Public Bank Stake To 10 Pct Over Five Years

KUALA LUMPUR, Oct 10 -- The estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd will reduce their stake in Public Bank Bhd to 10 per cent over five years from the current 23.4 per cent.

This reduction will come via a restricted offer for sale (ROFS) of the Public Bank shares held.

Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek said Bank Negara Malaysia (BNM) and the Ministry of Finance have approved the ROFS.

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“At the end of the five years, the percentage holding will be at 10 per cent. However, (the family will) remain as a major shareholder of Public Bank,” he told a press conference today after signing a memorandum of understanding (MoU) with LPI Capital Sdn Bhd for the latter’s acquisition of 44.15 per cent stake in PBB valued at RM1.72 billion.

Earlier, the youngest daughter of the late Tan Sri Teh Hong Piow, Diona Teh Li Shian, who represented the family, explained that the decision to reduce the family’s control and stake in Public Bank complies with the Financial Services Act.

“To honour his legacy and to show our deep appreciation and gratitude, we will be undertaking an exercise to distribute a portion of our Public Bank shares at a discount to all employees, directors and eligible shareholders of the Public Bank Group.

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“This initiative aims to ensure that Public Bank remains in the hands of those who have nurtured its growth and success over the years, enabling us to continue building our legacy together,” she said.

Diona said that her father often said that the success of Public Bank was not his alone as it was built on the trust and loyalty of its shareholders and the relentless commitment of its employees, or as he would like to call them, his “corporate family”.

“To honour his legacy and to show our deep appreciation and gratitude, we will be undertaking an exercise to distribute a portion of our Public Bank shares at a discount to all employees, directors and eligible shareholders of the Public Bank Group.

This initiative aims to ensure that Public Bank remains in the hands of those who have nurtured its growth and success over the years, enabling us to continue building our legacy together,” she said.

Diana added that the funds generated from the stake sale would remain in Malaysia and not be repatriated overseas.

It was reported that the block held by the Teh family stood at 22.77 per cent via Consoli­dated Teh Holdings, of which Hong Piow himself held all the shares in Consolidated Teh Holdings, except one share held by Tay Mui Leng.

Hong Piow, Mui Leng and Diona serve as directors of Consolidated Teh Holdings.

According to the Financial Services Act 2013 (FSA), an individual can only hold five per cent in a bank, but this can be increased to 10 per cent with BNM’s approval.

Institutional investors’ stake is limited to 20 per cent, with BNM approval needed for a stake beyond that.

According to reports, Hong Piow was permitted to hold 23.4 per cent, well beyond the 10 per cent standard, due to the “grandfather rule” that states persons who have interest above the level when the FSA went into effect in 2013 are exempt from compliance.

-- BERNAMA