The sale of Affin Bank's shareholding to Sarawak is only awaiting BNM's approval - Khaled Nordin
April 5, 2024 10:00 MYT
The sale of Affin Bank's shareholding to Sarawak is only awaiting BNM's approval - Khaled Nordin
Sarawak now has a 4.8% stake in Affin Bank, after buying 112.56 million shares in mid-April last year at RM1.97 per share, or RM221.74 million in total.
KUALA LUMPUR: Defense Minister Datuk Seri Mohamed Khaled Nordin confirmed that Boustead Holdings Bhd, which was taken over by the Armed Forces Fund Board (LTAT) in June 2023, will divest its stake in Affin Bank Bhd to the Sarawak state government.
However, he did not explain the amount of holdings that will be disposed of.
He said the agreement is currently awaiting Bank Negara Malaysia (BNM) approval.
"We will proceed with it (stake sale) and just wait for approval from BNM.
"Not LTAT but its subsidiary, Boustead. LTAT still maintains its stake in Affin Bank," he said
LTAT currently holds a 28.79% equity stake in Affin Bank while its wholly owned unit Boustead has a 20.02% stake. The bank's second largest shareholder is Bank of East Asia Ltd, with a 23.93% stake.
Sarawak, through the Sarawak State Finance Secretary, now has a 4.8% stake in Affin Bank, after buying 112.56 million shares in mid-April last year at RM1.97 per share, or RM221.74 million in total.
In January 2024, Sarawak Premier Tan Sri Abang Johari Openg said, negotiations with LTAT for the state government to acquire an additional stake in Affin Bank are expected to be concluded soon.
Meanwhile, Mohamed Khaled said, assuring that the ministry is committed to restructuring LTAT under the Strategic Plan 2023-2025 (MAMPAN25) and stated that it includes plans to restructure the business model as well as LTAT's shareholding in strategic companies.
"I would like to reiterate the commitment of the Ministry of Defense in driving LTAT to become an organization that contributes to the economic development of the country and guarantees the social protection of the Malaysian Armed Forces.
"LTAT is committed to practicing prudent and careful cash flow management to meet the needs of paying back retirement savings to its contributors.
"We want to optimize the performance of LTAT with the best business model without affecting the strategic interests of entities that have great potential," he said.
