KUALA LUMPUR (April 17): Sarawak Premier Tan Sri Abang Johari Tun Openg has described a report alleging the state as being keen to acquire a stake in AMMB Holdings Bhd (AmBank Group) (KL:AMBANK) to merge with its 31.25%-owned Affin Bank Bhd (KL:AFFIN) as mere speculation, according to Bernama.

Sarawak has not sent any state government representative to discuss the matter with AmBank Group, Abang Johari was quoted as saying.

However, Sarawak is always ready to negotiate with any entity that wants to collaborate with the state government, Abang Johari reportedly said.

“If you want to propose, you should ask her father first... but (in this context), the father doesn't know about the matter, so how can you propose?

“Jokes aside, I was also surprised when I read the report… The report is just speculation.

“I have no comment because I don't know about that,” he was quoted as saying at the RECODA Raya Rindok event organised by the Regional Corridor Development Authority (RECODA) on Thursday.

The Edge Malaysia weekly, in its April 14 edition, reported that the Sarawak state government was looking to buy a stake in AMMB as part of a merger plan with Affin, quoting sources.

Sarawak will hold no more than 20% stake in the merged banking group, which would be the fourth largest in the country by assets, one of the sources was quoted as saying.

“Sarawak is very keen on having control of a much larger bank,” one source reportedly said.

Overtures have been made by friendly parties representing the state, to AMMB’s 11.83%-shareholder Tan Sri Azman Hashim, the report said, although talks have yet to bear fruit.

Aside from AMMB, Sarawak is also said to be looking at DRB-Hicom Bhd’s (KL:DRBHCOM) 70%-owned Bank Muamalat Bhd, as well as Kuwait Finance House (M) Bhd, which is looking for a buyer to take over its retail loan portfolio.