Sarawak, LTAT talks on Affin Bank to wrap up soon, says Abang Jo

By – Thiruselvam

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The negotiation between state investment arm, State Financial Secretary Sarawak and the Armed Forces Fund Board (LTAT) for the former to acquire an additional stake in Affin Bank Bhd is set to be finalised soon, says Sarawak premier Abang Johari Openg.

The Sarawak government currently has a 4.95% stake in the bank after it bought 112.56 million shares in mid-April last year at RM1.97 per share, or RM221.74 million in total.

In December, The Edge reported that Sarawak was interested in acquiring an additional 15% stake in Affin from LTAT, which owns a 29.7% stake in the bank, while its wholly-owned unit Boustead Holdings Bhd has a 20.65% stake.

Abang Johari said the Sarawak government made its initial investment because of Affin’s good performance.

“We want to look at the bank because it will boost (our) capital. That’s why we are interested in the bank,” he said in a press conference after officiating the Affin Bank Market Outlook 2024 programme at Menara Affin.

Abang Johari added that Sarawak’s investment in the banking sector, including in Affin, would boost the state’s small and medium-sized enterprises, as well as business activities.

Earlier this month, he had hinted at the possibility of the Sarawak government assuming control of additional major entities in 2024 to play a greater role in its economic development and protect its rights.

The Borneo Post reported Abang Johari as saying that the state’s economy had been gradually growing over the past five years, highlighting the RM13.1 billion in state revenue achieved in 2023, in contrast with RM11.9 billion in 2022.

Meanwhile, Affin CEO Wan Razly Abdullah Wan Ali said as negotiations between the state government and LTAT were still ongoing, an announcement would be made once a decision has been reached.

Source – DAILY EXPRESS