Hong Leong Finance

[Stocker]

HL bank from Malaysia bought over Ban Heng Lee bank more than 20 year ago and they already have a present, full license bank in Spore.

[freedom]

an interesting speculation from Lim & Tan (link) about possible merger between Hong Leong Bank and Hong Leong Finance after "Media on both sides of the Causeway reported that a quid pro quo arrangement is being looked into by the 2 governments."

looking at the shareholding structure, the ultimate parent holding company for both Hong Leong Bank and Hong Leong Finance would be Hong Leong Investment Holdings Pte Ltd.

If finally Hong Leong Bank is going to obtain the qualifying full bank license, it is quite possible to merge between them.

do your own research.

The 2 cousins don't see eye to eye , since the days of their father. Thta's was the reson whi Quek Hong lye took control of the Malaysia bizs including HL credit/HL Asia, and Spore Kwek Hong png took HL finance, CDL .

I am not sure where the idea comes from. I always thought that they were separated because the nations were separated, not because of conflict. I remember I read somewhere that Kwek Leng Beng still maintains a good business relationship with his cousin Quek Leng Chan, something like they meet once a month.

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Hl Fin at current prices is a value stock. How value will be unlocked, only time will tell. There was an excellent opportunity years ago when QFB licences were awarded in Singapore. However, foreign banks simply got the licences and walk straight into local banking scene.

Now with this buzz on Sing - M'sia exchange, there are valid speculations. Based on historical reasonings, even if an exchange materialise, the likely beneficiary will be that with strong and well connected Bumi holdings. Quite logically as well since DBS is the only remaining Sing banks (only 3 of them now) without a M'sian presence.

There would be only one suitor for HL Finance, Hong Leong Bank. There is no reason to sell to outsiders, unless they can pay a much higher price.

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HL bank from Malaysia bought over Ban Heng Lee bank more than 20 year ago and they already have a present, full license bank in Spore.

yes, it does have full bank license, but not much use. it is restricted in terms of number of branches and automated teller machines. Only qualifying full banks are permitted to establish up to 25 service locations of which up to 10 can be branches from 1 January 2005

[Stocker]

My dad worked for Hong Leong Holdings for 35 years. He know Kwek Hong Leong, Hong Kai , Hong Lye , hong Pny and most of their children.
Can tell you more if relevant.

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When Hong Lye and Hoong Png split , they more or less have the tacit agreement that they take charge of each countrie. Spore Kwek is a minority in Malaysia and vice versa. QLC has small interest in HL holdings , he enter into spore market after acquiring FCC from Alan Ng in 80's and changed its name to Guocoland.

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[freedom]

My dad worked for Hong Leong Holdings for 35 years. He know Kwek Hong Leong, Hong Kai , Hong Lye , hong Pny and most of their children.
Can tell you more if relevant.

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When Hong Lye and Hoong Png split , they more or less have the tacit agreement that they take charge of each countrie. Spore Kwek is a minority in Malaysia and vice versa. QLC has small interest in HL holdings , he enter into spore market after acquiring FCC from Alan Ng in 80's and changed its name to Guocoland.

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thanks for sharing the information.

[Stocker]

That was the reason why Spore City dev involved very little in Malaysia, one condo project in Malacca and one hotel in KL.
QLC bought the bank from Khoo khay peng's Mui bankat 1.2 billion RM. Spore quek has nothing to do with this bank.
Since QLC was more or less "restricted ' his business activities in Spore market, he spend more monies and times in HK and Phillipine. He bought Dao Heng bank thru Guoco HK and sold it to DBS at a PTB of 3.27 X. He did not incorperate compnies in spore, all thru acquisitions, FCC and BIL ( today's guoco leisure ), Ban Heng lee bank .
QLC is the son of Hong lye but was adopted by hong kai becos the later has no children. Leng hai is his brother.
Kwek Hong Leong was the elder of the Kwek brothers but died rather young.

[freedom]

substantial shareholders of HL Bank/Guoco Group etc

Hong Leong Company (Malaysia) Berhad (“HLCM”)
HL Holdings Sdn Bhd (“HLH”)
Hong Leong Investment Holdings Pte Ltd (“HLInvt”)
Davos Investment Holdings Private Limited (“Davos”)

Kwek Leng Beng
Kwek Leng Kee
Kwek Leng Joo
Kwek Leng Peck

Quek Leng Chan

(from Guoco Group annual report of 2011)
HLIH owns 46.534% of HLCM.
HLInvt owns 34.38% of HLCM
Davos owns 33.59% of HLInvt
Kwek Leng Kee owns 41.92% of Davos
Quek Leng Chan owns 100% of HLIH and 2.424% of HLCM directly

(from HL Finance annual report of 2010)
Kwek Leng Beng owns 2,320 share of HLInvt, and has 40,744 share of deemed interest in HLInvt
Kwek Leng Kee has 47,019 share of deemed interest in HLInvt
Kwek Leng Joo owns 1,290 share of HLInvt
Kwek Leng Peck owns 10,921 share of HLInvt


(from Guoco Group web site)
Quek Leng Chan is a shareholder of Davos



It seems that the Singapore side (Kwek Leng Beng/Kwek Leng Kee) does have some influence over the Malaysia side (HL Bank/Guoco Group) through Hong Leong Investment Pte Ltd, which owns 34.38% of HLCM

[Jacmar]

I fully agree what stocker has said about the inner workings in HL family background. The Quek cousins has drawn their gentleman boundaries.Another thing that is happening in malaysia such that this merger is only a pipe dream is malaysian poliitics. there is a force M&A going on(slowly but surely) on the various banks. All the chinese banks will eventually be swallowed by the bumi banks.Even Public bank which is so big and profitable is under pressure.So expect HL bank to be swallowed in the near future.maybe DBS can be a white knight again and pay a ridiculous price to buy over HL bank...ala dao heng II.

[KopiKat]

I fully agree what stocker has said about the inner workings in HL family background. The Quek cousins has drawn their gentleman boundaries.Another thing that is happening in malaysia such that this merger is only a pipe dream is malaysian poliitics. there is a force M&A going on(slowly but surely) on the various banks. All the chinese banks will eventually be swallowed by the bumi banks.Even Public bank which is so big and profitable is under pressure.So expect HL bank to be swallowed in the near future.maybe DBS can be a white knight again and pay a ridiculous price to buy over HL bank...ala dao heng II.

What you posted may be true during Mahathir's time when UMNO was extremely dominant in Malaysia. In today's context, where the oppositions is now rather strong, I doubt that their government would want to commit 'political suicide' by doing what you'd posted.

HLBank became the No.4 Bank (by Assets and Market Cap) last year after their acquisition of EON Bank. PBank was No.3. These 2 Chinese controlled banks looks set to survive any further consolidation in the Malaysia Banking scene. Perhaps they may even merge to become the No.1 Bank!

As for the Lim and Tan report on the possibility of HLBank acquiring/merging with HLFin, it does make some sense if HLBank is really aggressively expanding their biz. But then again, I'm speaking from a vested view point.

[Jacmar]

What you posted may be true during Mahathir's time when UMNO was extremely dominant in Malaysia. In today's context, where the oppositions is now rather strong, I doubt that their government would want to commit 'political suicide' by doing what you'd posted.

HLBank became the No.4 Bank (by Assets and Market Cap) last year after their acquisition of EON Bank. PBank was No.3. These 2 Chinese controlled banks looks set to survive any further consolidation in the Malaysia Banking scene. Perhaps they may even merge to become the No.1 Bank!

As for the Lim and Tan report on the possibility of HLBank acquiring/merging with HLFin, it does make some sense if HLBank is really aggressively expanding their biz. But then again, I'm speaking from a vested view point.

You did be surprised how greedy these malaysians politicians are. Robert Kuok was so fed up when his sugar empire in malaysia was gobbled that he did not want to invest in malaysia anymore and instead plump in 1 billion worth of investments in Indonesia. Needless to say also a lot into china.

My sis used to work for a chinese malaysian bank and has since been gobbled up by a bumi bank at a cheap price!!She thinks it is just a matter of time before all the chinese owned banks are gobbled up.

Looks like you have not fully digest what Stocker said in his thread. HL bank buying over HLF ain;t going to happen. dream on.....

[KopiKat]

My sis used to work for a chinese malaysian bank and has since been gobbled up by a bumi bank at a cheap price!!She thinks it is just a matter of time before all the chinese owned banks are gobbled up.

Sorry to hear abt your sis. My only experience I had with Malaysia Banks was a lot more positive as I made lots of $$ from PBankF (Capital Gains + Div). I'll stop posting my nonesense about Malaysia Banks in this forum henceforth.

Looks like you have not fully digest what Stocker said in his thread. HL bank buying over HLF ain;t going to happen. dream on.....

Whether HLBank buys over HLFin or not is not important to me. I ain't going to sell a single lot of my HLFin which I'd bought at below $2.40 (Friday's close) until it hit my own target price (still got a long way to go). Ya, I'm going to dream abt that happening and I'm going to hang on even if it drops back to it's recent lows of aro' $2.10. In fact, I'll buy more if it drops back.

In the meantime, I'll try to enjoy the 5% div yield (if they maintain the same payout as last FY) and even dream abt them paying a special dividend (if it's not asking too much in this current times of economic uncertainty) for the coming FY results.