Jan. 14 (Bloomberg) -- Hong Leong Financial Group Bhd., a Malaysian insurance and banking group controlled by billionaire Quek Leng Chan, offered to buy out Hong Leong Capital Bhd., cutting the group’s number of listed companies in Kuala Lumpur.
It offered 1.71 ringgit ($0.567) per share for the investment-banking unit, according to a stock exchange filing in Kuala Lumpur today. That’s a 20 percent premium to Hong Leong Capital’s last traded price of 1.42 ringgit before its shares were halted on Jan. 11.
Hong Leong Capital provides investment banking, stock and futures broking as well as fund-management services through its units Hong Leong Investment Bank Bhd. and Hong Leong Asset Management Bhd. Hong Leong Financial already owns 79.09 percent of the company, according to the statement.
Hong Leong Financial also controls Hong Leong Bank Bhd., which holds the group’s retail, private and Islamic-banking interests. All three companies currently have separate Kuala Lumpur listings.
Hong Leong Capital shares have risen 10 percent this year, compared with a 0.3 percent drop in Malaysia’s FTSE Bursa Malaysia KLCI Index. Hong Leong Financial has gained 9.2 percent so far in 2013.
To contact the reporter on this story: Chong Pooi Koon in Kuala Lumpur at firstname.lastname@example.org
To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at email@example.com