KUALA LUMPUR: Affin Bank Bhd's share price saw one of the highest surges on the stock market today following Sarawak Premier Tan Sri Abang Johari Abang Openg's announcement that the state would finalise the acquisition of a commercial bank on July 19.
The bank's share price increased by as much as 20 sen, or 7.69 per cent at its closing, resulting in a market capitalisation of RM6.72 billion.
Last Friday, Abang Johari said that the signing of papers to take over the bank, most likely the long-rumored Affin Bank, would proceed as planned.
Although he did not specifically name the bank, he indicated that Sarawak is poised to take control of a significant financial entity, positioning itself as a leading force in Malaysia's banking sector.
"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.
Currently, the Armed Forces Fund Board (LTAT) holds the largest percentage of shares in Affin Bank with about 28 per cent. The Bank of East Asia Ltd. follows with over 23 per cent, while LTAT's wholly owned Boustead Holdings Bhd is third with around 20 per cent.
A February report by an online business portal suggested that the Sarawak government was considering increasing its stake in Affin Bank from 4.8 per cent to around 30 per cent.
On April 13, 2023, Affin Bank, in a filing with Bursa Malaysia, announced that LTAT had sold 112.56 million shares in the bank to the Sarawak financial secretary for RM221.74 million. The shares, representing 4.95 percent of the total issued shares, were sold at RM1.97 each.