M&A deal in the making with Public Bank- LPI Capital suspension

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M&A deal in the making with Public Bank- LPI Capital suspension
RHB Investment BankPublic BankLPI Capital
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(Reuters) - Argentina captain Lionel Messi is ready to return to their line-up when they play Venezuela in the CONMEBOL World Cup qualifiers, but midfielder Alexis Mac Allister's availability is in doubt, manager Lionel Scaloni said.

In a research note today, RHB IB said that based on its estimation, an all-cash deal would be earnings and return of equity accretive, and would move Public Bank ’s Common Equity Tier 1 ratio to a more optimal level, in line with the management’s recently stated objective of"optimising capital to maximise ROE”."Assuming that Public Bank issues new shares, we estimate the impact would be broadly neutral to EPS, ROE, and capital.

LPI Capital is predominantly involved in the general insurance business in Malaysia, Singapore, and Cambodia. Assuming a merger and acquisition price-to-book ratio of two times -- similar to the AMMB-Kurnia deal --the investment bank estimates that LPI could be valued at RM5.3 billion, using FY2025 consensus book value per share.

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