Malaysia’s second-biggest lender by market value is expected to pay in cash and shares for Consolidated Teh Holdings Sdn Bhd’s nearly 43% stake in LPI Capital Bhd, the people said, asking not to be identified as the information isn’t public.

“A potential deal would trigger a buyout of the remainder of LPI,” one of the people said.

“Public Bank wants to acquire the insurer as it aims to be a full-fledged universal bank, offering a variety of financial services,” the person said.

LPI’s shares have risen about 9% this year, giving the company a market value of RM5.2 billion (US$1.2 billion). Public Bank has advanced 6.5% to a value of RM88.7 billion.

Public Bank and LPI both asked for trading to be suspended in Kuala Lumpur today pending an announcement, which the people said could come as soon as this week.

LPI declined to comment. Public Bank didn’t respond to requests for comment.

Founded in 1962 as London & Pacific Insurance Co, LPI is an investment holding company.

According to its website, it adopted its present name in 1999 after transferring its insurance business to subsidiary Lonpac.

Public Bank, established in 1966, has 293 branches in Malaysia and 157 overseas, and total assets of about RM493 billion, the website showed.

Teh died in 2022, aged 92.