The children of Public Bank Berhad founder, the late Teh Hong Piow, have no plans to be part of the board of directors (BOD) or take over the group’s management in the near future.
Hong Piow’s youngest daughter, Diona Teh Li Shian, said the current group chief executive officer and managing director Tay Ah Lek is doing a great job leading the bank’s management team.
“Currently, we don’t see any change in this and we look forward to seeing Tay leading the team going forward,” she said at a press conference today.
In January 2019, Hong Piow retired as the group’s chairperson but continued to stay on as an adviser to Public Bank and the Public Bank Group. He passed away in December 2022 at the age of 92.
Tay, a veteran of Public Bank, joined the company in 1966 and rose through the ranks to become its managing director.
He has a background in banking and business administration and serves on the boards of several Public Bank Group companies.
Earlier, both Diona and Tay attended a signing ceremony for the bank’s acquisition of a 44.15 percent stake in LPI Capital Sdn Bhd for a total cash consideration of RM1.72 billion.
LPI, an investment holding company listed on the main market of Bursa Malaysia, provides general insurance coverage through its subsidiary Lonpac Insurance Bhd.
It currently has 21 branches throughout Malaysia, one branch in Singapore, and also operates in Cambodia through an associate company.
Expanding insurance offerings
Speaking at the press conference after the ceremony, Tay said the acquisition represents a strategic opportunity for Public Bank to expand its general insurance segment in Malaysia.
He added that the deal would allow the enlarged Public Bank Group to establish an immediate market presence and a strong foothold in the general insurance segment in Malaysia.
He also said the proposed acquisition is in line with the group’s plans to expand beyond organic growth through strategic acquisitions to expand its product and service offerings.
“This strategic acquisition of LPI Group, a long-established and leading general insurance player in Malaysia, represents a clear and unique opportunity for us to accelerate our vision to move towards a ‘universal banking model’ that offers a comprehensive and diverse range of financial and other related products and services under the same group.”
Tay added that with the group’s existing network of over 260 branches throughout the country, LPI Group can leverage and expand its distribution channels.
“In addition, we would also be able to tap into the sales and distribution network of LPI and expand our reach to cover clients and customers of LPI,” he said. - Mkini
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