KUALA LUMPUR (Aug 9): Counters related to Malaysia’s second richest man, Tan Sri Quek Leng Chan — Hong Leong Bank Bhd (HLBB) and Hong Leong Financial Group Bhd (HLFG) — emerged as top gainers on the local bourse on Tuesday (Aug 9), following a report that the billionaire is weighing options for his stake in HLBB.
Shares in HLBB opened two sen or 0.1% higher at RM20.84, before the stock surged further to hit a high of RM21.04.
At the time of writing, shares in HLBB traded 22 sen or 1.06% higher at RM21.04, making it the top gainer on Bursa Malaysia.
At RM21.02, HLBB was valued at RM45.57 billion.
Meanwhile, at the opening bell, HLFG — controlled by Quek, who holds a 62% stake in HLBB — opened unchanged at RM19.24, and leaped further to hit a high of RM19.48.
At the time of writing, shares in HLFG traded 16 sen or 0.83% higher at RM19.40, giving the company a market capitalisation of RM22.26 billion.
On Monday, Reuters reported that Quek is weighing options for his stake in HLBB, including a merger, citing two sources with knowledge of the matter.
According to the news report, the move might trigger wider consolidation in the local banking sector.
HLBB is the country’s fourth largest lender, with a market value of US$10 billion (RM44.59 billion).
The sources said the move by Quek comes as the bank's shares had risen sharply this year, and as he considers succession issues.
HLBB shares hit a record in June and had recovered 17% from a five-month low hit in November, outpacing gains in the KL Finance index.
Quek bought into HLBB, which posted a record net profit for the year to June 2021, via HLFG in 1994. It has branches in Singapore and Hong Kong, and fully-owned subsidiaries in Vietnam and Cambodia.