KUALA LUMPUR (Nov 26): Boustead Holdings Bhd has ceased to be a shareholder of Affin Bank Bhd (KL:AFFIN) after selling all the 482.11 million shares it held in the banking group, equivalent to a 20.08% stake.
Boustead Holdings sold the block of shares on Monday, according to Affin's bourse filing on Tuesday. It sold 469.68 million shares to SG AssetFin Holdings Sdn Bhd (SAH) and the remaining 12.43 million shares to the open market. SAH is a wholly-owned subsidiary of the Sarawak state government.
The filing did not indicate the transaction value. The announcement came after some 647.13 million shares in 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. They were sold at 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 SAH, be acquiring 634.7 million Affin shares, or a 26% stake, from Lembaga Tabung Angkatan Tentera (LTAT) and Boustead. That would increase SAH’s stake in Affin to 31.25% from 4.8%. However, it did not reveal at what price the stake would be bought.
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 would be reduced to 22.81%.
In announcing the planned acquisition in September after obtaining Bank Negara Malaysia's conditional approval for the deal in June, Sarawak Premier Tan Sri Abang Johari Tun Openg 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 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.
Boustead was privatised by the armed forces fund in 2023 at 85.5 sen per share, or RM703.25 million.
Affin's share price closed seven sen or 2.36% lower at RM2.89 on Tuesday, bringing the group a market capitalisation of RM6.94 billion. The stock has gained 39% since the start of the year.
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