KUALA LUMPUR: Affin Bank Bhd's share price one of the top gainers in the stock market after Sarawak Premier Tan Sri Abang Johari Abang Openg said the state's takeover of a commercial bank will be sealed on July 19.
The bank's share price surged as much as 17 sen or 6.5 per cent at RM2.77 per share.
As at 11.06am, the stock was trading at RM2.75 with 9.6 million shares changing hands, valuing its market capitalisation at RM6.6 billion.
Last Friday, Abang Johari said the signing of papers to take over the bank, most likely the long-rumoured Affin Bank, would be on schedule.
While he did not specifically name the bank, Abang Johari said that Sarawak is set to take over a major financial block, positioning itself as a dominant player in Malaysia's banking industry.
"There is no more secrecy. By then, we will officially sign to take over this major block, which includes substantial shares, soon, July 19," he was quoted by Borneo Post.
The Armed Forces Fund Board (LTAT) is currently the largest shareholder of Affin Bank, with about 28 per cent stake, followed by the Bank of East Asia Ltd, with over 23 per cent and LTAT's wholly-owned Boustead Holdings Bhd with about 20 per cent.
On April 13, 2023, Affin Bank in a filing with Bursa Malaysia, said LTAT had sold 112.56 million shares in the bank to the Sarawak financial secretary for RM221.74 million.
The bank said it had sold the shares, representing 4.95 per cent of the total issued shares, at RM1.97 each.