By DayakDaily Team
KUCHING, Nov 28: The Sarawak government became the first State government in Malaysia to own the largest stake in a bank following the recent completion of a deal with Lembaga Tabung Angkatan Tentera (LTAT) that has raised its stake in Affin Bank Bhd to 26.96 per cent.
According to The Edge Malaysia, a total of 647.13 million shares in Affin Bank Bhd, representing a 26.96 per cent stake, were traded off-market on Monday (Nov 23).
The report cited Bloomberg data, revealing that the shares were sold in eight tranches for RM1.78 billion, at prices ranging between RM2.46 and RM2.84 per share. This represented a discount of between 17 per cent and 4.05 per cent compared to Affin’s last closing price of RM2.96 in the open market on the same day.
The acquisition included 165.05 million shares from LTAT (equivalent to 6.87 per cent of the bank) and, together with the 20.08 per cent stake acquired by its unit SG Assetfin Holdings Sdn Bhd (SAH) from Boustead Holdings Bhd, elevated the Sarawak government to the largest shareholder of Affin Bank.
As a result of this transaction, LTAT’s shareholdings in Affin decreased from 28.88 per cent (as of Sept 27, 2024) to 22.01 per cent, while SAH’s shareholdings surged to 31.25 per cent from 4.81 per cent, and Boustead had disposed of its entire 20.08 per cent stake in the bank.
Affin Bank’s share price remained steady at RM2.89 as of Wednesday (Nov 25), giving the group a market capitalisation of RM6.94 billion. Notably, the stock has risen 39 per cent year-to-date.
The acquisition was part of a broader strategy announced by Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg in September. The move received conditional approval from Bank Negara Malaysia (BNM) in June.
Abang Johari emphasised Sarawak’s intention to leverage Affin Bank’s resources and expertise to create a financial platform aligned with Sarawak’s economic aspirations.
“By leveraging Affin’s extensive network and expertise, we will work together to unlock new opportunities, facilitate access to capital, and ignite the entrepreneurial spirit of our people. Together, we will build a financial ecosystem that nurtures innovation, promotes financial literacy and empowers financial literacy and enables our communities to achieve their aspirations,” he said.
The Sarawak government’s strategic step into the banking sector is expected to foster greater economic potential, innovation, and access to financial resources for Sarawak’s development agenda. — DayakDaily
