CEO Morning Brief

EPF Ceases to be Substantial Shareholder of Affin Bank

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Publish date: Thu, 18 Apr 2024, 11:06 AM
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TheEdge CEO Morning Brief
Photo by Low Yen Yeing/The Edge

KUALA LUMPUR (April 17): The Employees Provident Fund (EPF) has ceased to be a substantial shareholder of Affin Bank Bhd after disposing of three million shares in the banking group.

The EPF’s disposal of Affin Bank shares took place on April 12, according to a bourse filing on Wednesday. The filing did not specify the value of the transaction, nor did it state the remaining amount of shares held by the EPF.

Affin Bank shares closed at RM2.54 on April 12.

According to Affin Bank’s annual report for the financial year ended Dec 31, 2023 (FY2023), the EPF held a total of 121.91 million shares in the bank, equivalent to a 5.195% stake, as at Feb 29.

It is worth noting that the EPF had been reducing its stake in Affin Bank from January to end-February, selling a total of 16.46 million shares during the period.

There is significant interest surrounding the bank, as the Sarawak government is reportedly in discussions to increase its stake in Affin Bank through its investment arm, which could see it raising its stake to 30% from the current 4.8%.

Currently, the Armed Forces Fund Board (LTAT) is the largest shareholder of Affin Bank, holding a 28.79% stake, while its wholly owned unit Boustead Holdings Bhd holds an additional 20.02%.

Affin Bank, the second smallest of eight banking groups by assets in the country, has seen its stock gain about 18.27% year-to-date. Its shares remained unchanged at RM2.46 on Wednesday, giving it a market capitalisation of RM5.77 billion.

Source: TheEdge - 18 Apr 2024

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