Posted by XinXin Chan > 1 month ago | Report Abuse

Good news to be announced?

Posted by dawchok > 1 month ago | Report Abuse

RM9.80 per share of LPI. Bully.

Posted by Siang9282 > 1 month ago | Report Abuse

Acquisition by Public Bank

Posted by VivoPrince > 1 month ago | Report Abuse

At 32% discount from LPI's last traded price of RM13. Does this mean LPI's share price will collapse tomorrow (Oct 11)?

Posted by PASSIVESTOCK > 1 month ago | Report Abuse

Yes for sure
PE RATIO AT 12.50 & last trade price at 13 to 9.80 25 % discounted

Posted by pang72 > 1 month ago | Report Abuse

PBBANK 这轮是什么操作？
~~~~~~~~~~~~~~~~~~~~~~
金融业重磅交易！　大众银行17.2亿收购伦平资本44.15%股权
（吉隆坡10日讯）大众银行（PBBANK，1295，主板金融股）宣布以17亿2000万令吉现金或每股9.80令吉，向已故丹斯里郑鸿标和其家族郑氏联合控股收购伦平资本（LPI，8621，主板金融股）的44.15%股权。
大众银行董事经理丹斯里郑亚历表示，此项收购将有助于强化该行的保险业务，并为客户提供更多样化的保险产品。
他指出，这次收购与大众银行的发展战略一致，并将透过该行全国范围内的分行网络，扩大伦平保险的销售渠道。
“我们有信心，这次收购将带来互补效应，并推动未来的共同增长。”
大众银行收购伦平资本，与市场预期相符。大众银行和伦平资本从周三（9日）起暂停交易，以公布上述消息。大众银行原定周五（11日）召开记者会说明这项收购与未来布局，但之后改为提前一天（9日）举行。

Posted by pang72 > 1 month ago | Report Abuse

Pbb is famous for stingy.
Lpi worth 32% discount of $13? 9.80 only?

Posted by pang72 > 1 month ago | Report Abuse

Then, LPI crashes to 9.80 tomorrow...?

Posted by alibiii > 1 month ago | Report Abuse

left hand right hand only, teh family gave discount to pbb, good for pbb, and lpi minority share holders just eat pop corn only, if really drop to rm9.8 i will load up a tone

Posted by dawchok > 1 month ago | Report Abuse

The bank intends to maintain LPI's listing status on the Main Market of Bursa Malaysia.

Posted by dawchok > 1 month ago | Report Abuse

As long as the dividend payout is sustained, price will not drop much as dividend buyers will come in when yield increases.

Posted by greenshoot > 1 month ago | Report Abuse

My research indicates that no current LPI owners will sell to Public Bank for RM 9.80 a share, which means that the MGO acceptance rate will be very low and that LPI will most likely stay listed once the offer closes.

It appears that Public Bank purposefully set the offer price at RM 9.80 per share in order to discourage current LPI shareholders from selling their shares to Public Bank in order to maintain LPI's listing.

Posted by greenshoot > 1 month ago | Report Abuse

My study indicates that when trading resumes tomorrow, October 11, 2024, the price of LPI shares is likely to continue its upward path.

Posted by mesoan > 1 month ago | Report Abuse

why set such low offer at 9.8? looks like they are trying to eat minority shareholder?

Posted by stncws > 1 month ago | Report Abuse

Rm9.80 ok...better than none..becos u want undur diri..pbb of course buy low.

Posted by ks55 > 1 month ago | Report Abuse

How much is NTA?

Posted by curiousq > 1 month ago | Report Abuse

is good for PBB but LPI holders get nothing 😊

Posted by greenshoot > 1 month ago | Report Abuse

@mesoan

"This price of RM 9.80 was negotiated based on a willing-buyer, willing-seller basis. Additionally, money is not a factor, it's more about realigning our interests," Li Shian, the youngest daughter of the late founder, told the media after the signing ceremony.

Posted by mesoan > 1 month ago | Report Abuse

greenshoot can the price be higher? so it wont create fear in the market?

Posted by greenshoot > 1 month ago | Report Abuse

Analysts are less optimistic that LPI's remaining shareholders will be enticed to sell their stakes through the mandatory general offer at RM9.80 per share, given the steep discount

Posted by 1pingpong > 1 month ago | Report Abuse

So buy in or exit now? Hooha hooha.

Posted by blistering > 1 month ago | Report Abuse

as MGO stated it's advisable to take LPi private under PBB as subsidiaries but they insist it to remain public that means LPi will be another PBB tools to raise any means of future funds such as PP , Warrants and etc instead of PBB now They can use LPi muscle to flexing more cash...I believe LPi has no value anymore 😂 selling pressure will continue next week

Posted by speakup > 1 month ago | Report Abuse

Sell. It only worth 9.80 according to public bank

Posted by greenshoot > 1 month ago | Report Abuse

TA Securities described the acquisition price of RM9.80 per share as reasonable. With a PBV of approximately 1.7x, the offer presents a slight premium compared to recent transactions in Malaysia, where average PBV multiples have been around 1.6x.

It noted that the premium appears justified, given that PBB is acquiring a controlling stake in LPI, which likely provides additional strategic benefits such as greater influence over LPI's operations and synergies within the group.

“However, the offer price represents a notable 23.7% discount to LPI’s 5-day VWAP and a discount to its current PBV of around 2.3x. Given this significant discount, we believe that minority shareholders will unlikely tender their shares under the MGO,” TA said

Posted by greenshoot > 1 month ago | Report Abuse

From MIDF Research.
KEY INVESTMENT HIGHLIGHTS
• Public Bank acquiring a 44.15% stake in LPI. This will trigger a MGO
• Offer price is unattractive – at a discount to current market price
• Still fundamentally sound with good dividend yield. Offer price is not a reflection of its fundamentals
• Forecasts unchanged
• Maintain BUY | Unchanged TP of RM14.52 | based on an unchanged FY25F P/BV of 2.42x

www.midf.com.my/sites/corporate/files/2024-10/lpi-cu-no_incentive_to_participate-midf-111024.pdf

Posted by greenshoot > 1 month ago | Report Abuse

LPI holds some 215 million PBB shares. If PBB holds LPI, these shares cannot be held by LPI and what will happen to that block? Will it be sold to the market or distributed as a dividend-in-specie?We will have 12 months from the date of completion of the proposed acquisition of LPI to address this matter.

It is still premature for us to make a decision on this matter but rest assured, we will explore all possibilities and make a decision at the appropriate time that will not be disruptive to the share price of Public Bank, whilst ensuring the interest of the shareholders of PBB and LPI is protected at all times.

https://www.thestar.com.my/business/business-news/2024/10/14/structured-success-continues-for-public-bank

Posted by greenshoot > 1 month ago | Report Abuse

Scenario 1: In the event that LPI chooses to sell 215 million PBB shares to the market, it is expected to record a substantial profit and provide windfall dividends to its shareholders.

Scenario 2, LPI shareholders would receive around 500 free PBB shares for every 1,000 LPI shares if LPI opted to distribute 215 million PBB shares as a dividend-in-specie.

In conclusion, LPI stockholders will profit handsomely in any of the aforementioned scenarios.

Posted by paperplane > 1 month ago | Report Abuse

FV is 9.80, sell??

Posted by greenshoot > 1 month ago | Report Abuse

@paperplane

The decision to sell or not is entirely yours.

Posted by VivoPrince > 1 month ago | Report Abuse

Is something brewing in LPI ... instead of moving down towards RM9.80, it's climbing instead?

Posted by dawchok > 1 month ago | Report Abuse

Good move LPI although it is still lagging behind other blue chips. Gembatte.

Posted by Gnanasong > 3 weeks ago | Report Abuse

Awesome QR, but some people sell on good results today ...

https://www.thestar.com.my/business/business-news/2024/10/29/lpi-capital039s-profit-jumps-26-to-rm124mil-in-3q

Posted by forthewin > 2 weeks ago | Report Abuse

@greenshoot
public bank shares are yielding about 4% in dividend yield
the 215million shares held would bring about $40m in dividend for LPI
after selling PBB shares, does it mean that LPI net profit would fall by about $40m?

Posted by greenshoot > 1 week ago | Report Abuse

@forthewin

Yes, the dividend income will be $40m lower

But, the sales proceeds from the disposal of Public Bank shares by LPI will yields an amount (A)


Scenario 1: - likely

amount (A) likely to be distributed to existing LPI shareholder as special dividend.


Scenario 2: - unlikely

amount (A) to be kept in the fixed deposit with licence bank by LPI to earn interest income

Posted by greenshoot > 1 week ago | Report Abuse

@forthewin

You may refer to the following link for more information

https://www.thestar.com.my/business/insight/2024/11/02/complications-in-public-banks-corporate-exercise

Posted by forthewin > 5 days ago | Report Abuse

@greenshoot

Yes, I think likely will be given as special dividend after selling public bank shares.
But LPI shares would also drop by the same amount after the distribution.
Profit for LPI will also drop by the the dividend income they used to receive from holding Public bank shares moving forward.
I won't really consider this a windfall gain, because LPI is not selling Public bank share at a premium to the market.
Its akin to selling part of the company asset and distributing the proceeds to shareholders.
I would prefer if LPI can reinvest the proceeds into a higher yielding business/company so that we see income growth with LPI.

Posted by greenshoot > 1 day ago | Report Abuse

@forthewin

LPI needs to divest PBB stocks to fulfill regulatory obligations so that PBB can take over LPI.

Scenario 1 - LPI to return the funds generated by selling PBB shares to current shareholders through a special dividend, leaving it to them to decide where and how to invest for optimal returns.

Scenario 2 - LPI to utilize the sales proceeds from selling PBB shares to fuel future growth by acquiring other companies.

In the second scenario, the existing LPI investors will certainly benefit more.

The process of acquiring a business is a complicated and frequently long journey that companies undertake to grow their operations or enhance their market standing. From the moment a potential target is first identified, to the completion of due diligence and negotiation, and finally to the integration of the acquired company, every stage presents its own distinct challenges and factors to consider.

LPI will probably focus more on expanding organically than on acquiring other companies.

Be optimistic about Scenario 2, but be ready for Scenario 1.

Wishing you a pleasant day.