KUCHING: Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced that Sarawak’s proposal to increase its stake in Affin Bank Bhd is currently pending approval from Bank Negara Malaysia (BNM).
The purpose of acquiring a significant stake is to secure a substantial position as a blockholder within the bank.
Abang Johari stated that the matter is in its final stages.
“The process has been completed, and we are now awaiting official approval from BNM,” he informed reporters after attending Sarawak Energy’s Ramah Tamah Aidilfitri at Menara Sarawak Energy yesterday.
When asked about the possibility of a Sarawak representative serving as chairman on the bank’s board, Abang Johari explained that it is subject to approval by BNM.
“Once the majority of our shareholding, the majority block, which is a maximum of 32 per cent under Bank Negara, changes hands, there will certainly be changes within the board,” he explained.
“We will wait for the official letter to receive further details,” he added.
Furthermore, he stated that the state government shares will be placed under Sarawak Incorporated, a wholly-owned company of the state government through the State Financial Secretary Incorporation.
In February, Abang Johari announced that this strategic move would pave the way for the establishment of the state’s financial institution, dedicated to supporting the growth of small and medium-sized enterprises (SMEs), including fashion industry players who conduct online business.
According to a report by The Edge, the Sarawak government is interested in purchasing an additional 15 per cent of Affin from the Armed Forces Fund Board (LTAT), which currently holds a direct 29.7 per cent stake in the banking group. Additionally, LTAT’s wholly-owned unit, Boustead Holdings Bhd, has a 20.65 per cent stake.
If the deal is successful, the Sarawak government will become the third-largest shareholder of Affin, holding approximately a 20 per cent stake. The second-largest shareholder is The Bank of East Asia, with a 23.79 per cent stake.
Meanwhile, LTAT will maintain its position as the largest shareholder, with a combined direct and indirect stake of 35.3 per cent.
