KUALA LUMPUR (Jan 8): The Sarawak State Financial Secretary is in talks with the Armed Forces Fund Board (LTAT) to potentially buy more shares in Affin Bank Bhd, said the bank in a Bursa Malaysia filing on Monday.
According to Affin Bank, the state government held a 4.80% stake in the bank as at Dec 29, 2023.
“Any transaction that may result from the discussions will be done in accordance with the relevant rules and regulations,” said Affin Bank in the filing.
Shares in Affin Bank jumped to a nine-year high of RM2.38 at Monday’s closing bell — up 20 sen or 9.17% from last Friday’s closing price of RM2.18 — giving it a market capitalisation of RM5.58 billion.
Over the past year, the counter has risen over 17%.
“LTAT is obligated to inform Affin Bank of any changes to its shareholding in compliance with the requirements or significant divestment of major shareholders. Similarly, any party who acquires an interest of 5% or more will be required to notify Affin Bank of the same,” said the banking group.
“Affin Bank will make an announcement upon receipt of the notification on any changes in shareholdings involving its major shareholders,” it added.
The latest announcement confirmed The Edge Malaysia weekly's report titled Sarawak on verge of raising stake in Affin Bank, published for the week of Jan 8 to 14.
According to the report, the Sarawak state is keen to buy an additional 15% of Affin from LTAT with a direct 29.7% in the banking group, while LTAT’s wholly-owned unit Boustead Holdings Bhd has a 20.65% stake.
If the deal is successful, the Sarawak state will become the third-largest shareholder of Affin, holding an approximate 20% stake. The second-largest shareholder is The Bank of East Asia, with a 23.79% stake.
Meanwhile, LTAT will retain its position as the largest shareholder, maintaining a combined direct and indirect stake of 35.3%.
For the third quarter ended Sept 30, 2023, Affin Bank’s net profit dropped 88.5% to RM100.45 million, from RM872.36 million a year earlier, as revenue tumbled 69.2% to RM500.44 million from RM1.62 billion.