KUALA LUMPUR (Sept 3): The Sarawak state government’s planned acquisition of more stake in Affin Bank Bhd (KL:AFFIN) is at the tail end of the process, said the lender’s chief executive officer Datuk Wan Razly Abdullah.

Sarawak is seeking to raise its stake in Affin Bank from the current 4.8% to around 30% and is in talks with Bank Negara Malaysia on the acquisition from the bank’s largest shareholder, the Armed Forces Fund Board (LTAT).

"I think the Sarawak deal will follow its natural timeline,” Wan Razly told the media at the sidelines of the launch of Affin’s new private banking service. “We wait for the announcement from the Sarawak side.”

A sales and purchase agreement with LTAT however has been delayed as Sarawak seeks to clarify certain conditions imposed by the central bank on the deal.

LTAT is currently Affin Bank's largest shareholder with a 28.88% stake. The Edge has reported that Sarawak is set to acquire Boustead Holdings Bhd's entire 20% stake in Affin Bank, in addition to part of LTAT's stake. Boustead is wholly owned by LTAT.

Hong Kong-based The Bank of East Asia Ltd is the second-largest shareholder with a 23.93% stake.

On Aug 26, local news outlets Bernama and Borneo Post reported that Affin Bank plans to more than double the number of its branches in Sarawak by year-end for both its conventional and Islamic banking services, as well as investment banking.

Affin is betting on the entry of Sarawak state as a shareholder, which could provide a “quantum shift” with access to a large number of customers and deposits. “The group’s presence in Sarawak will be amplified by the end of 2024,” Wan Razly said on Aug 23. 

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