Malaysia Morning Wrap | Potential Acquisition on the Horizon for Public Bank

The market overall climbed Tuesday, and Chinese tech stocks and Oil futures fell. Overnight, a Chinese economic planning agency press conference disappointed investors who were hoping for further stimulus, according to Wall Street Journal. Oil and energy, meanwhile, declined without a clear, incoming response from Israel for Iranian missiles to drive up fuel consumption. Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded +0.97%, the $Dow Jones Industrial Average (.DJI.US)$ climbed just 0.30%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 1.45%.

$PBBANK (1295.MY)$, Malaysia's third-largest banking group by assets, is reportedly on the brink of an acquisition, involving a company closely linked to its operations, according to informed sources. The exact target of the acquisition remains undisclosed, but speculations suggest it could be $LPI (8621.MY)$, a prominent player in the insurance sector. To facilitate this development, trading of shares for both Public Bank and LPI Capital will be temporarily halted starting at 9am on Wednesday (Oct 9). LPI Capital, a major entity on the Main Market, entirely owns Lonpac Insurance Bhd, one of Malaysia’s top general insurance companies. As per the latest annual report dated Jan 24, Consolidated Teh Holdings Sdn Bhd, owned by the late founder of Public Bank, Tan Sri Teh Hong Piow, holds a significant 42.74% stake (or 170.27 million shares) in LPI Capital. Teh's passing in December 2022 marks a pivotal moment in the company's history, potentially influencing this strategic acquisition.

$IREKA (8834.MY)$, currently classified as a Practice Note 17 (PN17) company, has been awarded a RM1.07 billion sub-contract to enhance a segment of the Pan Borneo Highway in Sabah. This four-year project, assigned by Sabah-based Gammerlite Sdn Bhd, will focus on improving the roadway from Kampung Lomou Baru to Kampung Toupus.

$PERDANA (7108.MY)$ has secured two work orders valued at RM19.1 million for providing accommodation workboats, facilitated by its subsidiary, Perdana Nautika Sdn Bhd. These orders, awarded by DESN Marine Services Sdn Bhd, involve related-party transactions due to shared ownership through Dayang Enterprise Holdings Bhd.

$MCLEAN (0167.MY)$ is aiming to diversify its business by acquiring a plastic injection moulding company, funded through a RM12.33 million private placement. Concurrently, the company proposes a RM35 million share capital reduction to adjust its financial structure and better reflect its asset values and financial positioning.

$ENEST (03025.MY)$ has received approval from Bursa Malaysia for its transition from the LEAP Market to the ACE Market, exempting it from extending an exit offer to shareholders and appointing an independent adviser for this transfer.

$SUNSURIA (3743.MY)$ has been granted exclusive rights to establish new British international schools across multiple regions in Southeast and South Asia, a partnership with Concord College International Ltd, based in the UK.

$MEDIA (4502.MY)$ has confirmed that Tan Sri Syed Mokhtar Al-Bukhary continues to hold a substantial stake in the company through Aurora Mulia Sdn Bhd, which owns 31.9% of Media Prima.

$SEAL (4286.MY)$ is negotiating an additional 10% stake in MSR Green Energy Sdn Bhd, extending the deadline for a definitive agreement to October 30. This move is part of Seal’s strategy to diversify into the renewable energy sector.

$SIME (4197.MY)$ is enhancing its electric vehicle portfolio by introducing Denza, a premium sub-brand of BYD, to the Malaysian market. Sime Darby Auto Imports Sdn Bhd has been appointed as the official importer, with BYD Malaysia Sdn Bhd as the distributor, aiming to enrich the local market with innovative and premium EV options.