KUALA LUMPUR (Sept 21): Bank Negara Malaysia (BNM) has given the nod for the Sarawak government's acquisition of a majority stake in Affin Bank Bhd (KL:AFFIN), according to several media reports, quoting Premier Tan Sri Abang Johari Tun Openg.
Reports from the New Straits Times and the Borneo Post indicate that an official announcement regarding the acquisition is expected within a week.
Speaking at the 100th anniversary celebration of Rumah Entrie Lengkoi longhouse in Ulu Paku, Abang Johari confirmed that all necessary processes, including those involving BNM, have been completed.
He emphasised that he did not want to make an early announcement to prevent any potential stock market speculation.
The premier reportedly said that all procedural requirements with BNM have been satisfied, and the state is now on the verge of owning its bank.
In July, Abang Johari told The Edge that Sarawak expects to formalise a deal to raise its stake in Affin Bank to about 30% in about a month, from 4.8% now.
In an exclusive interview, Abang Johari said the state is committed to seeing through the deal but first needs to sort out some “minor” technical issues.
The Armed Forces Fund Board, or LTAT, currently has a 28.88% stake in Affin Bank, while Boustead Holdings Bhd — which is wholly owned by LTAT — owns about 20%. The second-largest shareholder is Hong Kong-based Bank of East Asia Ltd, with a 23.93% stake.