KUALA LUMPUR (Nov 25): Some 647.13 million shares in Affin Bank Bhd (KL:AFFIN) representing a 26.96% stake were traded off-market on Monday.
Bloomberg data showed that the shares were sold in eight tranches for RM1.78 billion. The blocks of shares were transacted between RM2.46 and RM2.84 per share, representing a discount of between 17% and 4.05% over Affin Bank’s last closing price of RM2.96 in the open market on Monday. No other details were revealed.
Back in September, the Sarawak state government announced it would, via its wholly owned subsidiary SG Assetfin Holdings Sdn Bhd (SAH), be acquiring 634.7 million shares of Affin Bank or a 26% stake from Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd. That would increase SAH’s stake in Affin to 31.25% from 4.8%. However, no price was mentioned then.
As of Feb 29, 2024, LTAT was the largest shareholder of Affin with a direct shareholding of 28.79% and indirect holding of 20.02% through Boustead. With the divestment of the 26% stake to SAH, LTAT’s stake in Affin should have been reduced to 22.81%.
Sarawak Premier Tan Sri Abang Johari Tun Openg revealed in an interview with The Edge in July that the state had obtained Bank Negara Malaysia's conditional approval for the deal in June.
In announcing the planned acquisition in September, Abang Jo, as the premier is fondly known, had said Sarawak’s decision to invest in Affin was driven by the need to take a strategic step to create a financial platform and synergy with a sound and competent bank, which was essential for the state to elevate its economic potential.
“By leveraging on Affin’s extensive network and expertise, we will work together to unlock new opportunities, facilitate access to capital, and ignite the entrepreneurial spirit of our people. Together, we will build a financial ecosystem that nurtures innovation, promotes financial literacy and empowers financial literacy, and enables our communities to achieve their aspirations,” he had said then.
Last Friday, Affin Bank reported a 45% increase in net profit to RM145.82 million in the three months ended Sept 30, 2024 (3QFY2024), compared with RM100.45 million last year. Year-on-year, net interest income for the quarter rose 27% while net fee and commission income climbed 31%.
The bank also booked larger writeback of credit impairment losses of RM66.2 million and higher net foreign exchange gains of RM75.2 million during the period.
Quarterly revenue rose 22.45% to RM612.77 million in 3QFY2024, from RM500.44 million. No dividend was declared for the quarter.
For the first nine months, Affin’s net profit came in at RM374.61 million, up 3.3% from RM362.66 million, on the back of cumulative revenue of RM1.61 billion, from RM1.5 billion.