Quek increases stake in Bank of East Asia
Published: Saturday July 6, 2013 MYT 12:00:00 AM
Updated: Saturday July 6, 2013 MYT 7:31:16 AM
Updated: Saturday July 6, 2013 MYT 7:31:16 AM
BY TEE LIN SAY
PETALING JAYA: Tan Sri Quek Leng Chan has increased his stake in Hong Kong’s family-run Bank of East Asia Ltd (BEA) to 15.02% from 14.99% via vehicle Guoco Group Ltd.
In a filing to the Hong Kong Stock Exchange on July 4, Guoco had bought 740,000 shares at an average price of HK$27.41 (RM11.29) on June 26.
Guoco continues to be the second-largest shareholder of BEA, behind Spain’s CaixaBank, which has a 16.13% stake.
Shares of BEA have risen 4.07% in the past two days to HK$28. 15 (RM11.57) since the announcement.
It’s a known fact that Quek has had an interest in BEA, one of Hong Kong’s largest independent local banks with total consolidated assets of HK$692.1bil (RM284.38bil) as of Dec 31, 2012. BEA operates one of the largest branch networks in Hong Kong, with 88 branches, 63 SupremeGold Centers and seven I-Financial Centers throughout the city.
So far, Quek has been unable to take over BEA, partly due to its institutional and diversified shareholding base. BEA is listed on the Hong Kong Stock Exchange and is one of the constituent stocks of the Hang Seng Index.
Many have speculated that Quek’s reason for taking his Hong Kong-listed Guoco Group private was to give him more control over its 15% stake in BEA, and more cash for any attempt to make a go for the bank.
On Dec 12 last year, Quek, via vehicle GuoLine Overseas Ltd, made a takeover offer for his 74.5%-controlled Guoco Group Ltd at HK$88 per share. Subsequently, the bid was revised to HK$100 per share after shareholders said the initial bid was too low.
Quek is Malaysia’s fifth-richest billionaire with a net wealth worth some US$4.8bil (RM14.4bil). While he heads the Hong Leong Group in Malaysia, he derives the biggest portion of his fortune from Guoco Group.
His recent attempt to take the investment banking arm Hong Leong Capital Bhdprivate wasn’t successful, as shareholders chose to hold out for a better price.
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