SARAWAK's takeover of Affin Bank Bhd will be sealed on July 19, Premier Abang Johari Openg disclosed today.
He said the signing of papers to take over Malaysia’s second smallest of eight banking groups will be on schedule.
“The majority share will be ours,” he said after announcing Amanah Saham Sarawak Berhad’s (Assar) final/additional dividend of 3.5 sen per unit ending June 30.
The Armed Forces Fund Board (LTAT) is currently the largest shareholder, with a 28.79% stake, followed by the Bank of East Asia Ltd, with 23.93%, and LTAT’s wholly-owned unit Boustead Holdings Bhd, with 20.02%.
The Edge in a report in February stated, “Bank Negara is understood to be mulling the Sarawak government’s proposal to raise its holding to around 30%, from 4.8% currently”.
Abang Johari declared that with the takeover, Sarawak is “going to be a dominant player in the country’s banking sector”.
He said the takeover of Affin Bank is bigger – by assets - than the six homegrown banks put together, alluding to Bian Chiang Bank, established in 1924 in Kuching, Hock Hua Bank, founded in 1952 also in Kuching, Miri Community Bank which began operations in 1960, Malayan United Bank, set up in 1965 in Kuching, Bank Utama (Malaysia), started in 1975 in Kuching and Perwira Affin Bank, originally established as Bank Perwira in 1975 in Kuching before they were forced to merge into larger banking groups as part of a nationwide consolidation initiative by the federal government to strengthen the banking sector.
The premier described the merger as “taken over by other people”.
“Now we make a reverse takeover. We (will) have a bank of our own.”
On April 13, Affin, in a filing with Bursa Malaysia, said the Armed Forces Fund Board 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% of the total issued shares, at RM1.97 each.
The deal, if successful, could make the Sarawak government the third-largest Affin shareholder.
On Assar’s dividend, Abang Johari said today’s second distribution for the financial year ending June 30, will involve a distribution of RM16.39 million to 57,542 investors.
He said this brings the total dividend return of Assar as at the end of June to 6 sen per unit, “which includes an interim dividend of 2.5 sen per unit plus a final dividend of 3.5 sen per unit, with a total distribution of RM28.1 million compared to a net income of RM36.16 million”. – The Vibes, July 5, 2024.
