Sarawak to raise stake in Affin Bank

KUCHING: Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has confirmed that Sarawak government will raise its stake in Affin Bank Bhd soon.

However, he declined to reveal the shareholding changes as negotiations are still ongoing.

“I don’t think I can announce it now taking into consideration Bursa regulatory requirements, but it will be finalised soon. Then, we will make an official announcement, either by the Sarawak government or Affin Bank.”

He told the media during a press conference held after delivering his keynote address at the ‘Malaysia Market Outlook 2024 — Propelling Malaysia Forward’ at Menara Affin, Tun Razak Exchange in Kuala Lumpur today (Jan 30).

Abang Johari described the move to acquire additional stake as an ‘investment’ and to help the state’s small and medium-sized enterprises as well as business activities.

“We feel like we need a bank in order to boost our small and medium sized enterprises,” he said when asked why Sarawak was looking at owning a stake in a bank as no other state government has done that.

He also said the Sarawak government made its initial investment due to Affin Bank’s good performance.
Meanwhile, Affin Bank president and Group chief executive officer Datuk Wan Razly Abdullah said the ongoing discussions were held between its major shareholders, Sarawak government and Armed Forces Fund Board (LTAT).

“They are negotiating the transaction. Once this is finalised, we will make an official announcement in due course,” he said.

The Sarawak government currently has a 4.95% stake in the bank after it bought 112.56 million shares in mid-April last year at RM1.97 per share, or RM221.74 million in total.

According to The Edge’s report, the Sarawak government is keen to buy an additional 15% of Affin from LTAT which has a direct 29.7% in the banking group, while LTAT’s wholly-owned unit Boustead Holdings Bhd has a 20.65% stake.

If the deal is successful, the Sarawak government will become the third-largest shareholder of Affin, holding an approximate 20% stake. The second-largest shareholder is The Bank of East Asia, with a 23.79% stake.

Meanwhile, LTAT will retain its position as the largest shareholder, maintaining a combined direct and indirect stake of 35.3%