merger PBB & PBB-01

It is believed of a revision in the weightage accorded to the shares by the FTSE Group in view of the impending merger of the two stocks – PBB & PBB-01 which would take effect on April 16 2014.

The merger would also increase the free float of Public Bank shares, something that contributed to the increased weightage.

According to a statement issued by FTSE earlier 2014, it is expected to replace Public Bank Foreign with Public Bank in the FTSE Global Equity Index Series on the effective date of the merger.

On April 16 2014, Public Bank’s entire issued and paid-up share capital would be quoted and traded on the Main Market of Bursa Securities under a single stock name of “PBBANK”. The stock name “PBBANK-O1” will be removed from the Official List of Bursa Securities.

Under the merger, the aggregate limit of 30% of the total issued and paid-up share capital of the shares held by foreigners and the foreign ownership regulations would no longer be relevant.

The higher weightage for Public Bank could have spurred fund buying of the local and foreign shares.

As at Dec 31, 2013, foreigners held 30.71% of the issued shares which meant that 0.71% of the shares would be entitled to the rights and entitlements attached to the shares except for voting rights.

It was also speculated that PBB was poised for a merger and acquisition exercise.