Public Bank Plans to Take Hong Kong Unit Private

By Ying Xian Wong

KUALA LUMPUR--Public Bank plans to take its Hong Kong-listed subsidiary private, aiming to streamline its ownership structure and reduce costs.

The Malaysian bank said in a filing late Tuesday that it plans to take Public Financial private at an offer price of 2.50 Hong Kong dollars a share, equivalent to US$0.32.

The offer represents a 61.29% premium to Public Financial's closing price of HK$1.55 on Aug. 19, its last trading day before the announcement, and a premium of between 73.61% and 83.82% over its average share price during the past six to 12 months.

Public Bank currently owns a 73.23% stake in Public Financial, leaving the remaining 26.77%, or approximately 293.9 million shares, subject to the offer.

Upon completion, Public Financial will become wholly owned subsidiary of Public Bank, and its shares will be delisted from the Hong Kong Stock Exchange.

Public Bank said the take private offer would simplify its ownership structure, allow closer coordination between the two entities, and reduce the costs and administrative burden associated with maintaining a separate listing.

The transaction is expected to be earnings accretive and contribute positively to Public Bank's future earnings. Based on 2025 figures, the deal is projected to increase Public Bank's net asset value per share to 3.14 ringgit from 3.10 ringgit, while earnings per share are expected to remain steady at 0.37 ringgit.

The proposal remains subject to approval by Public Financial shareholders, the Bermuda Court, and the Hong Kong Stock Exchange, among other conditions. The long-stop date is March 8, 2027.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

September 08, 2026 21:38 ET (01:38 GMT)