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Hong Leong Bank chairman Quek Leng Chan emerges as substantial unitholder in AME REIT

2022-09-23T14:23:53+08:00September 23rd, 2022|0 Comments

KUALA LUMPUR (Sept 23): Malaysia’s second richest man, Tan Sri Quek Leng Chan, has emerged as a substantial unitholder in AME Real Estate Investment Trust (REIT) after acquiring 29.1 million shares in the REIT over two days.

This was after AME REIT, the REIT arm of industrial property developer AME Elite Consortium Bhd had made its debut on Bursa Malaysia on Tuesday.

Quek first emerged as a substantial unitholder of AME REIT on Sept 20 after he subscribed to 26.59 million units through the REIT’s initial public offering. He did so through Hong Leong Assurance Bhd (HLA) and Hong Leong MSIG Takaful Bhd.

HLA also subscribed to another 680,500 units in AME REIT on Sept 20.

Subsequently, Quek on Sept 21 acquired another 1.83 million units in AME REIT through HLA.

Following the transactions, Quek currently holds a 5.6% indirect stake or 29.1 million shares in AME REIT, according to AME REIT’s bourse filing on Friday.

Quek, who is also Hong Leong Bank Bhd (HLBB) chairman, made headlines last month after he was reported to be weighing options to reduce his controlling stake in the bank.

Bloomberg reported that Quek, 80, is mulling options for his stake in HLBB, including a merger, citing unnamed sources with knowledge of the matter.

Quek controls 62% of Hong Leong Bank via Hong Leong Financial Group Bhd, which far exceeds the 10% limit on individual shareholdings in financial institutions.

The sources said the move by Quek comes as the bank’s shares had risen sharply this year, and as he considers succession issues.

Quek bought into HLBB, which posted a record net profit for the year to June 2021, via HLFG in 1994. It has branches in Singapore and Hong Kong, and wholly owned subsidiaries in Vietnam and Cambodia.

AME REIT’s unit price finished one sen or 0.88% higher at RM1.15, bringing the group a market capitalization of RM598 million.

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