By Yee Mei
KUALA LUMPUR, Jan 30: Negotiations on the Sarawak government’s stake in Affin Bank Bhd (Affin Bank) will be finalised soon.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak is still negotiating with Affin Bank and the Armed Forces Fund Board (LTAT) to determine the shareholding amount.
“I don’t know if I can tell you (yet on the amount) as Affin (Bank) is a listed company, so I have to comply with Bursa (Malaysia’s requirements) as I don’t want it to be affected.
“But definitely we are looking at Affin; it is more or less conclusive in terms of our discussion with LTAT,” he said during a press conference after speaking at the ‘Malaysia Market Outlook 2024 — Propelling Malaysia Forward’ programme hosted by Affin Bank at Menara Affin, Tun Razak Exchange in Kuala Lumpur today.
When asked why Sarawak was looking at owning a stake in a bank, Abang Johari replied that it would help boost the State’s small and medium enterprises (SMEs) and business activities.
Meanwhile, Affin Bank president and chief executive officer Datuk Wan Razly Abdullah added that there is also a discussion among major shareholders, and once everything is finalised, an announcement will be made.
He said Sarawak and Affin Bank have a lot in common, especially in their mission to drive local economic growth.
“Sarawak wants to be progressive, Affin (Bank) also wants to be progressive. Sarawak has three pillars of its vision going forward (economic growth, social inclusion and environmental sustainability); we also have our own three (pillars to enhance customer service, leadership, and responsible banking impact).
“There are lots of similarities; we hope we can grow and do business well together,” he said.
The question was asked following speculations on the State government’s increased stake in Affin Bank.
Previously, it was reported that Affin Bank had hinted that the Sarawak government would increase its stakes in the bank by acquiring an additional stake from the LTAT.
According to a report by The Edge Malaysia on Jan 8, Affin Bank, in a Bursa Malaysia filing, said the Sarawak Financial Secretary is close to finalising a memorandum of understanding (MoU), potentially leading to an agreement to acquire an additional stake from LTAT.
Currently, Sarawak holds a 4.95 per cent stake in the banking group and is interested in acquiring an additional 20 per cent from the armed forces fund, which directly owns 29.7 per cent of the banking group.
On Jan 17, the Premier declined to comment on this possible share buy by the Sarawak government from LTAT and clarified that the figure was inaccurate.
Also present during the press conference was Deputy Premier Datuk Amar Douglas Uggah Embas. — DayakDaily
