BETONG: Bank Negara Malaysia (BNM) has approved the Sarawak government's acquisition of a majority stake in Affin Bank Bhd, Premier Tan Sri Abang Johari Openg said today.
He said an official announcement would be made within a week.
"Everything has been settled. Bank Negara has given Sarawak government the go-ahead," he said when speaking at the 100th anniversary of the Rumah Entrie Lengkoi longhouse in Ulu Paku, near here.
"You will hear within a week. I don't want to make an official announcement as I don't want people to buy the bank's stocks. That's why I don't want to tell earlier," he said.
He said the time had come for Sarawak to have its own bank, adding that Sarawak used to have many banks before they were taken over by banks from the peninsula.
In July, Abang Johari had said BNM had granted conditional approval for the Sarawak government to increase its stake in Affin Bank.
He had said the sale-and-purchase agreement (SPA) involving the Malaysian Armed Forces Fund Board (LTAT), the largest shareholder in the bank, was expected to be finalised within a month.
Abang Johari said Sarawak would acquire a major stake in the bank, positioning itself as a major player in Malaysian banking.
He said there was no more secrecy about the takeover, adding: "By then, we will officially sign (the SPA) to take over this major block, which includes substantial shares, soon."
LTAT is the largest shareholder of Affin Bank, with about 28 per cent, 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, Affin Bank in a filing with Bursa Malaysia, said the LTAT had sold 112.56 million shares in the bank to the Sarawak financial secretary for RM221.74 million.
The bank had said the 4.95 per cent of the total issued shares were sold at RM1.97 each.