Volkswagen Banks $PBBANK (1295.MY)$ shareholders release information regarding Lunping $LPI (8621.MY)$ acquisition case documents, and also release an independent advisor report, obtaining independent advisor support for its acquisition plan.
According to the announcement, Malaysian investment bank, the independent advisor, after evaluation, recommends Volkswagen Banks' shareholders to approve the mentioned acquisition during the extraordinary general meeting, indicating the fairness and reasonableness of the acquisition, without harming the interests of small shareholders.
Malaysian investment bank stated that Volkswagen Banks offered a purchase price of 9.80 ringgit per share for Lunping, lower than Lunping's stock price levels over the past 3 years; additionally, the price-to-earnings ratio and price-to-book value ratio of the offer are also comparable to other ordinary insurance companies available for comparison.
We notice that this acquisition brings opportunities for Bank of the Public to expand its range of financial products and market footprint into the ordinary insurance sector, especially domestically. Both Bank of the Public and Lunping, their distribution capabilities and competitive advantages can be strengthened after the completion of the acquisition.
Super large online opening on the 28th of this month
Bank of the Public, in a rare move, held a press conference on October 10th, announcing an offer of 1.7 billion 20 million ringgit or 9.80 ringgit per share to acquire 44.15% of Lunping's equity from the joint major shareholder, the Cheng's family. This triggers a mandatory general offer mechanism, offering the remaining shares of Lunping to other shareholders at the same offer price of 9.80 ringgit per share.
In any case, Bank of the Public intends to maintain Lunping's listing status.
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