KUALA LUMPUR: Shares of Affin Group Bhd tumbled after news broke that Sarawak state could take longer to raise its stake in the bank.
Its shares slid as much as 6.1 per cent to RM2.80 versus Thursday's closing price of RM2.97.
At 10.15am, its shares gained some ground to trade 3.7 per cent or 11 sen lower, to RM2.86.
A business weekly reported today, that what was supposed to be a sale and purchase agreement between the lender's biggest shareholder, Armed Forces Fund Board (LTAT), and the state is likely to turn into a Memorandum of Understanding to allow for Sarawak to meet conditions set by Bank Negara Malaysia for the deal.
The state is expected to raise its interest in Affin to 30 per cent.
LTAT has about 28 per cent stake in the bank, followed by the Bank of East Asia Ltd, with over 23 per cent and LTAT's wholly-owned Boustead Holdings Bhd holds about 20 per cent.
On April 13, Affin Bank in a filing with Bursa Malaysia, said the LTAT had sold a 4.95 per cent interest in the bank to the Sarawak financial secretary for RM221.74 million.