HLFG faces difficult choice ahead

Strong base: Hong Leong Financial Group’s entire market cap at present is RM15.8bil, but its 64 stake in Hong Leong Bank Bhd is currently valued at RM16.5bil.

While a restructuring may be necessary to comply with the stringent banking and capital rules, it may be more challenging to realise value from a shareholder’s perspective

STRINGENT banking and capital requirements, which is set to come into full effect by 2019, is currently affecting the valuation of Hong Leong Financial Group (HLFG), which is the holding company of Hong Leong Bank Bhd (HLB).