KUALA LUMPUR – The Sarawak government and the Armed Forces Fund Board (LTAT) signed a memorandum of understanding today to explore possible economic opportunities.
The MoU signing was held instead of the original share purchase agreement (SPA) signing, which will take place soon.
It was reported that the SPA signing ceremony was pushed back as Sarawak needed to clarify certain conditions with Bank Negara Malaysia.
It is understood that the initial SPA would have increased Sarawak’s stake in Affin Bank to 30%, compared to its current 4.8% share.
In a speech during the event today, Sarawak Premier Tan Sri Abang Johari Openg explained that the SPA signing will be held after receiving the green light to proceed with the agreement.
“With regard to the acquisition of additional shares in Affin Bank by the Sarawak government from LTAT, both parties will proceed with a sale and purchase agreement upon securing the necessary regulatory approvals.
“We believe that Affin Bank can have access to the network in wider Sarawak, where it can work together and leverage its investment banking and treasury capabilities,” he said.
Johari said the potential collaboration between the state and Affin Bank would allow the latter to expand its retail customer base by delving into Sarawak’s “untapped potential” in the market.
He added that the bank could expand its environmental, social, and governance credentials, as the state also has several green initiatives in the works.
“Affin Bank would expand its reach, enhance innovation, increase efficiency, and deliver shareholders’ value,” he said.
“I am confident that these synergies will solidify Affin Bank’s position as one of the key players in the financial industry.”
Johari also said that LTAT and the Sarawak government are aligned when it comes to sustainable investment philosophies, adding that this collaboration provides the state with opportunities to explore various priority sectors.
It was reported that the state government was to acquire the entire 20% stake owned by Boustead Holdings Bhd in Affin Bank, on top of a portion of LTAT’s shares.
LTAT is currently Affin Bank’s largest shareholder, with a share of 28.88%, while LTAT-owned Boustead is the bank’s third largest.
Also present at the signing today were Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Defence Minister Adly Zahari, and Deputy Sarawak Premier Datuk Amar Douglas Uggah Embas.
Various federal ministers and Sarawak lawmakers, as well as the state’s legislative assembly, also attended the event. – July 19, 2024