LPI sells Public Bank shares for RM95.64m

PETALING JAYA: Insurer, LPI Capital Bhd has disposed 5 million RM1.00 shares, via the open market for RM95.64 million or RM19.12 per share.

In a stock exchange filing last Friday, LPI said the disposal represents 0.13% of the total issued and paid-up share capital of Public Bank. It still holds 47.24 million shares, or 1.22% stake in the bank.

LPI said the disposal is expected to result in a RM77.5 million gain that translates to an increase in earnings per share of about 23.34 sen per share to the group for the financial year ending Dec 31, 2016.

The net profit attributable to the disposal is RM2.75 million and net assets of the disposal is RM95.64 million. LPI original cost of investment in Public Bank shares was RM29.5 million since year 1999.

"The rationale of the disposal is to realise tax exempt capital gains, to improve LPI group's capital adequacy ratio and to support business growth," it said.

LPI added that the proceeds will be placed into fixed deposit or invest in bonds to generate interest income.