Public Financial Holdings (00626) and its controlling shareholder Popular have jointly announced that on August 19, 2026, the offeror requested the board to propose a scheme of arrangement to privatize the company under Section 99 of the Companies Ordinance. The cancellation price for each scheme share is set at HK$2.50, representing a premium of approximately 61.29% over the last trading close of HK$1.55 per share on the Stock Exchange.

The total cash consideration payable by the offeror for the full implementation of the proposal amounts to approximately HK$735 million. The company has applied to the Stock Exchange for the resumption of trading of its shares from 9:00 a.m. on September 9, 2026. Upon the scheme becoming effective, all scheme shares will be cancelled, and an equivalent number of new shares will be issued to the offeror as fully paid, with the share certificates for such scheme shares ceasing to have effect as documents of title or evidence of ownership thereafter.

The company will apply to the Stock Exchange for the withdrawal of the listing of its shares pursuant to Rule 6.15(2) of the Listing Rules, subject to the scheme becoming effective. The offeror currently holds approximately 73.23% of the issued shares and serves as the company's controlling shareholder. If the proposal is successfully implemented, the company will become a wholly-owned subsidiary of the offeror.

The offeror believes that the resulting simplified shareholding structure will further align the interests of the company with the rest of the offeror's group and provide a more direct framework for the company's operations as part of the offeror's group. The privatization will eliminate the costs and administrative burdens associated with maintaining the company's listing status and allow resources to be more directly focused on its banking operations.

It is noted that the offeror is a company incorporated in Malaysia and listed on Bursa Securities (stock code: 1295). The offeror is primarily engaged in full-fledged commercial banking services and the provision of related financial services. The offeror's group is principally involved in full-fledged commercial banking, investment banking, financing and Islamic banking operations, stockbroking, provision of related financial services, unit trust fund management and sales of trust units, general insurance underwriting, trust services, and investment holding.