KUALA LUMPUR – The Sarawak government will soon raise its stake in Affin Bank Bhd as negotiations with majority shareholder Armed Forces Fund Board (LTAT) are “close” to being finalised, according to Premier Tan Sri Abang Johari Openg.
“It will be announced very soon,” he said at a press conference at Affin headquarters, here today.
“I cannot disclose at the moment how many shares the Sarawak government will acquire.”
It is understood that the state via its Financial Secretary will stand to own more than 20% of Affin’s shares, making Sarawak the biggest shareholder.
As of December 29 last year, Sarawak holds a 4.796% stake in Affin Bank. This was bought for RM1.97 per share, or RM221.74 million in April 2023.
For now, LTAT holds a 28.785% stake in the bank while Boustead Holding Bhd has 20%.
Previously, it was reported that the Sarawak government was looking into acquiring 5% in Affin Bank from LTAT.
When asked why the state government is interested to invest in financial institutions, Abang Johari said this acquisition will help small and medium enterprises, as well as business activities in Sarawak.
Investing in financial institutions is nothing new as the state once owned six banks prior to them being “eaten up” by bigger banks post the Asian Financial Crisis in the late 1990s.
“Having an interest in banks is based on several factors. We will have savings if there is a crisis and it also provides a return on investment.” – January 30, 2024