KUALA LUMPUR (Jan 30): The Sarawak state government is “close” to concluding its negotiations with the Armed Forces Fund Board (LTAT) to raise its stake in Affin Bank Bhd, said Premier Tan Sri Abang Johari Openg.

“Dekat (close),” Abang Johari said, when asked at a press conference when the state is expected to finalise the proposed acquisition.

The Sarawak state government, via investment arm State Financial Secretary Sarawak, holds a 4.796% stake in Affin Bank, which it bought for RM1.97 per share or RM221.74 million in total in April 2023.

The Edge reported earlier this month the Sarawak state government as being keen to acquire an additional 15% in Affin Bank from LTAT. LTAT has a direct 29.7% stake in the banking group while its wholly-owned unit Boustead Holdings Bhd has a 20.65% stake.

Responding to questions regarding the Affin Bank stake acquisition, Abang Johari recounted how as many as six banks originated from Sarawak in the past, such as Bank Utama and Wah Tat Bank.

 “When there was a policy [by the federal government] to merge all these banks [post Asian Financial Crisis], our banks were all swallowed by the big banks, if I can use the word ‘swallowed’.”

“We feel like we need a bank in order to boost our SMEs and also business activities in Sarawak,” Abang Johari said, when asked why Sarawak was looking at owning a stake in a bank when other states do not.

 “We want to look at the bank because it is part of our investment. That bank will boost up capital outlay, and that is why we are interested in looking at a bank,” he said.

“Definitely we are looking at Affin. [We are] more or less conclusive in terms of our discussions with LTAT,” he said. 

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