Malaysia' s Public Bank willing to pay for access to China

MalaysiaÆs third biggest lender, Public Bank Bhd. will pay HK$4.5 billion ($580 million) to buy Asia Commercial Bank.

By Lara Wozniak

February 15, 2006

In a bid to get access to the China market, MalaysiaÆs third biggest lender, Public Bank Berhad agreed yesterday February 15 to pay HK$4.5 billion $580 million to buy Asia Financial Holding's Hong Kong banking unit, Asia Commercial Bank.

Public Bank made the offer through its Hong Kong financial services subsidiary JCG Holdings Ltd. It will pay 2.5 times book value for Asia Commercial Bank, which operates 12 branches in Hong Kong, a branch in Shenzhen and has representative offices in Shanghai and Shenyang. But what is key, is that Asia Commerical Bank has been given approval by the Chinese authorities to open more branches in China.

Asia Commercial is typical of Hong KongÆs...

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