KUALA LUMPUR (Nov 27): Sarawak’s state government has become the largest shareholder of banking group Affin Bank Bhd, after the completion of a deal with Lembaga Tabung Angkatan Tentera (LTAT) for the acquisition of 165.05 million shares or 6.87% in the bank.
Together with the 20.08% stake that its unit SG Assetfin Holdings Sdn Bhd (SAH) had acquired from Boustead Holdings Bhd, the Sarawak government became the first state government in Malaysia to own the largest stake in a bank following the LTAT deal completion.
Consequently, LTAT’s shareholdings in Affin were reduced to 22.01%, from 28.88% as of Sept 27, 2024, while SAH’s shareholdings increased to 31.25%, from 4.81%. Boustead, meanwhile, had disposed of all its stake in Affin, compared to 20.08% previously.
Back in September, the Sarawak state government announced it would, via SAH, be acquiring 634.7 million Affin shares, or a 26% stake, from LTAT and Boustead. However, it did not reveal at what price the stake would be bought.
The announcement of the disposal of the stakes by Boustead and LTAT 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’s last closing price of RM2.96 in the open market on Monday.
No other details were revealed.
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.
Affin's share price closed unchanged at RM2.89 on Wednesday, 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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