Boustead Holdings (BHB) acquired around 2.2 million shares of Affin Bank (ABB) between 22 Nov - 1 Dec 2023. At the same time, BHB’s subsidiary Pharmaniaga Bhd is proposing to raise capital through rights issue and Boustead Plantation Bhd (BPlant)’s Offer Document has been dispatched to its shareholders.  Although the purchased amount of ABB shares were tiny compared to what they already owned (LTAT and BHB owns around 1.1 billion ABB shares), still one would wonder why? What’s up with these insubstantial transactions from BHB? What are they up to? What are they trying to tell the market? Market-making? 

It contradicts their vision to diversify and reduce overconcentration of its investment portfolio albeit it is a negligible amount to their holdings. I am perplexed. I would appreciate if anyone can share their view on why BHB acquired ABB shares recently? 

It does not mean that BHB cannot partially divest ABB which I still believe it will do so to address its huge debt challenge, if the objective was to distract the market. So what, if there's an offer and BHB will be persons acting in concert with the acquirer just like in the BPlant SSA ? 

On top of that, I am also perplexed with the absence of the usual disclosure of shareholders list for the month of October 2023 from ABB. What is the reason behind the delay? Why did ABB management act with such absence of usual communication or updates on their website this time? 

The noticeable peculiarity just reinforces my conviction. The more they acted strangely, the more confident I became. Of course, I could be wrong. Maybe I am paranoid because I have exposure in ABB. But if I am right, then what does the bank actually know at this point? Are they aware of any material information or material arrangement that is not disclosed to its shareholders?  

- A minority shareholder of Affin Bank Berhad 

6 Dec 2023

Disclaimer : In the interest of full disclosure and transparency, I hold a vested interest in Affin Bank Berhad (ABB). The opinion and content above is based on my personal analysis and assessment, and it does not constitute investment advice and is NOT intended to encourage or promote the purchase of Affin Bank securities and financial instruments or derivatives. The opinion presented above is for informational purposes only.