Possible update on Sarawak-Affin Bank share buy?

KUCHING (Jan 28): Speculations continue to brew on the state government’s increased stake in Affin Bank Berhad (Affin Bank) as Sarawak Premier Tan Sri Abang Johari Openg is slated to join the bank in a coming function tomorrow.

Affin Bank is hosting its ‘Malaysia Market Outlook 2024 – Propelling Malaysia Forward’ on Tuesday at Menara Affin, Tun Razak Exchange in Kuala Lumpur with Abang Johari as its guest of honour alongside the bank’s president and chief executive officer Datuk Wan Razly Abdullah.

The bank is calling for a press conference at 3pm with the two guests of honour.

Previously, the Premier declined to comment on this possible share buy by the state government from Lembaga Tabung Angkatan Tentera (LTAT). However, he clarified that the 20 per cent stake the Sarawak government was supposedly targeting was inaccurate.

“I dare not comment because the bank is a listed company. I can tell you that the figure as reported in the media is not correct,” he was quoted as saying mid-January when asked on the matter.

“But as the saying goes – if there is no wind, the flag will not flap.”

He recapped the state government’s application to establish a digital bank was not approved by Bank Negara Malaysia. However, he said “something” unexpectedly suddenly came to the state government.

“Let’s wait (and see) what will happen,” he added.

Earlier on, The Edge Malaysia had reported that the Sarawak State Financial Secretary is supposedly close to concluding a memorandum of understanding (MoU) for a deal to acquire an additional stake in Affin Bank Bhd from LTAT.

Currently, the Sarawak state government has a 4.95 per cent stake in the bank after buying the 112.56 million shares in mid-April 2023 at a price of RM1.97 per share – coming up to RM221.74 million in total.

The Edge also reported Sarawak state is keen to acquire an additional 15 per cent in Affin from the armed forces fund that has a direct 29.7 per cent in the banking group while its wholly-owned unit Boustead Holdings Bhd has a 20.65 per cent stake.