https://www.businesskorea.co.kr/news/articleView.html?idxno=230704

https://www.businesskorea.co.kr/news/articleView.html?idxno=231081

Similar to POS , ASTRO and many more ... when you thought below RM1 is "cheap"... then 0.80 ... then 0.50... then 0.30.... then 0.20 .... Complete disbelief

https://www.youtube.com/watch?v=Wo1MnE2sjgk&ab_channel=WorldOfLuxury

So.. the founder manage to divest all their stakes of 10% at RM2 per share...and pocketed RM140 million in cash. Just in time before all this drama (auditor resigned, EPF jump ship, etc ) started.. and the shares tanked to RM0.55 CEO then also jump ship. How brilliant. The founder whom must be laughing all the way to the bank with RM140 million cash must be awarded the greatest investor in Malaysia in 2024. The timing is very spot on isn't it? Can someone shed some light in this? And the rest of the shareholders are left to lick their wound.

According to the Korea Petrochemical Industry Association, China accounted for 42.9% of Korean petrochemical companies’ exports in 2020. That proportion fell to 36.3% in 2023 after Chinese petrochemical companies began aggressively investing in facilities starting in 2020.

China’s ethylene production surged 60% to 51.7 million tons in 2023, compared to 32.3 million tons in 2020. Its production volume is projected to grow to 56.0 million tons in 2025, according to industry observers.


China is 100% self-sufficient in its supply of basic petrochemicals such as ethylene and propylene, referred to as the rice of the industry. Its supply is forecast to exceed demand by 20% in 2025.

What's worse, China is dumping its products in Malaysia and other Southeast Asian markets to make up for reduced demand at home.

In the market of intermediate feedstocks such as paraxylene and propylene, which generate higher margins than basic petrochemicals, China is also emerging as a stronger player.

It is projected that China will meet all its needs for intermediate petrochemicals without imports by 2025.

Due to the supply glut, the ethylene-naphtha spread, or the difference between the prices of ethylene and its raw material naphtha, halved to $195 per ton in February this year, versus $398 in 2021. Its break-even point is about $300 per ton.

https://www.kedglobal.com/mergers-acquisitions/newsView/ked202403060014?_gl=1*m3inle*_gcl_au*MTg3MTcxOTI5OC4xNzMwMTgyMDY5

“AFFIN BANK was also notified that the Divestment is expected to be completed in the 4th quarter of 2024.”

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3487150

Hopefully once the divestment transacted , they will disclose the price together with the changes in substantial shareholding

https://www.nst.com.my/news/nation/2024/09/1108702/bnm-okays-sarawaks-affin-bank-acquisition-says-premier-watch

"You will hear within a week. I don't want to make an official announcement as I don't want people to buy the bank's stocks. That's why I don't want to tell earlier,"

WOW

https://www.channelnewsasia.com/asia/malaysia-sarawak-premier-abang-johari-openg-bavaria-4595366

"In recent years, Sarawak has retaken Bintulu Port from the federal government, bought over regional airline MASwings from the national flag carrier Malaysia Airlines, and is in the final stages of acquiring a controlling stake in Affin Bank."

CONTROLLING stake

"These major projects that have been implemented and undertaken by the Sarawak Premier’s administration does not include two other major acquisitions which are currently under negotiations, namely the taking over of MASwings and Affin Bank, which will definitely cost Sarawak billions of ringgit.

Now let us ask ourselves, how did Datuk Patinggi Abang Zohari managed to source such a colossal amount of money?

The answer is very complex, but to make it sound very simple - it is with a stroke of genius that his administration has managed to impose a five per cent SST on oil and gas productions in Sarawak. Since the imposition of the SST in 2019, it has contributed RM14.7 billion as of October 2023....

https://premierdept.sarawak.gov.my/web/subpage/news_view/6500/UKAS?fbclid=IwY2xjawFQjElleHRuA2FlbQIxMAABHUUCK4KD6LDx7vLMc8ThjW2kxnNUlMXd92n-COrAdpfzWA_AZLMWd_7hng_aem_8fkzKu95a8_LgGcSB7SLiQ

https://www.nst.com.my/news/nation/2024/05/1052310/sarawak-expects-collect-rm16-billion-revenue

I think Sarawak is likely to pay a fair premium to takeover Affin. Sarawak 's revenue for 2024 is expected to surpass last year's RM13.1 billion .

https://klse.i3investor.com/web/blog/detail/LTATneedToSellAffinBank/2024-02-21-story-h-188299947-SARAWAK_should_pay_a_premium_to_own_AFFIN_Bank

KUALA LUMPUR: The deal to increase the Sarawak Government's shareholding from the Armed Forces Fund Board (LTAT), which is the largest shareholder of Affin Bank, is expected to be fully finalised within a month.

The Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg said that the process of increasing the block of shares in the bank to about 30 from the current 4.8 percent is currently awaiting final approval from Bank Negara Malaysia (BNM).

According to him, BNM had previously given approval involving the acquisition of additional shares in Affin Bank by the Sarawak Government from LTAT on 12 June.

"However, at this time there are three 'minor' matters that need to be finalised in order to proceed with this share purchase agreement after obtaining the necessary regulatory approval," he said.

He said this in a joint press conference with UKAS and TVS after witnessing the signing ceremony of the Memorandum of Understanding (MoU) between the Sarawak Government and LTAT at the Menara Affin Auditorium here on Friday.

In the event, the Premier of Sarawak witnessed the signing of the MoU between the Sarawak Financial Secretary, Dato Sri Dr. Wan Lizozman Wan Omar and Chief Executive of LTAT, Mohammad Ashraf Md Radzi.

Speaking at the same press conference, the Premier of Sarawak said, the Sarawak Government will not interfere in any control over the operation of Affin Bank after the matter is fully finalized later.

He insisted that the state government has no interest or any form of involvement in the management or administration of Affin Bank.

"When we have a shareholding, of course we have a representative on the Board of Directors of Affin Bank and our representative will make recommendations, we (the Sarawak Government) will not interfere.

"Any business decision made by Affin Bank is entirely the responsibility of the Board of Directors and the bank's management," he said.

https://premierdept.sarawak.gov.my/web/subpage/news_view/4025/UKAS?fbclid=IwZXh0bgNhZW0CMTEAAR1-uisrahEk58O161ShauNagCqATNPigEa2HvlN325B-W_l9XotrczD6Ew_aem_8Q3nHkU6NPAvN-p0iXzihQ

Today’s The Edge Weekly newsprint
“ Premier : Sarawak expects to ink S&P on Affin Bank deal in a month “

It’s reported that they need to sort out some minor technical regulatory process . There’s indication it will be finalised within one month . Sarawak has been given conditional approval on June 12 but there are certain technicalities that they have to furnish to Bank Negara. “… I can’t give examples of the technicalities to you, but it is minor , very minor “ Abang Jo said.

https://www.youtube.com/live/MajCqg96BbU?si=xSNAjiuVuZ9RBcKM

precedent transactions involving the acquisition of financial institutions listed in Malaysia PBRs (Price-to-book ratio) ranging from 0.93 times to 2.35 times over the last 15 years from 2007 are as follows:

2013 Bank Islam Malaysia Berhad BIMB Holdings Berhad 1.88

2008 Bank Muamalat Malaysia Berhad DRB-Hicom Berhad 2.15

2018 Asian Finance Bank Berhad MBSB 1.30

2013 Hwang DBS Affin Holdings 1.28

2012 OSK Investment Bank Berhad RHB Capital Berhad 1.77

2012 ECM Libra Investment Bank Berhad Kenanga Investment Bank Berhad 1.27

2011 RHB Capital Berhad Aabar Investments 2.35

2011 EON Capital Berhad Hong Leong Bank Berhad 1.42

2008 EON Capital Berhad Primus Pacific Partners 2.21

2008 RHB Capital Berhad Abu Dhabi Commercial Bank 2.18

2007 Affin Holdings Bank of East Asia 1.30

2007 MIDF PNB 0.93

2007 RHB Capital Berhad Employees Provident Fund of Malaysia 1.76

2007 AMMB Holdings Berhad Australia and New Zealand Banking Group 1.29

https://www.youtube.com/watch?v=wz8rCquL88I

Astro AWANI : Abang Jo beri bayangan proses ambil alih Affin Bank dimuktamad 19 Julai

https://www.facebook.com/unitkomunikasidanpenerangansarawak/videos/446764558127326

Clip 1:07:50 / 1:11:33
Unit Komunikasi Awam Sarawak - UKAS
SIARAN LANGSUNG 5 JULAI 2024: MAJLIS PENGUMUMAN DIVIDEN ASSAR

RULE 9 ANNOUNCEMENT AND NOTICES

9.05 Announcements to be made by the offeror or potential offeror

(1) Before the board of the offeree is approached, the responsibility for making an announcement will normally rest with the offeror or potential offeror.

(2) The offeror or potential offeror should keep a close watch on the offeree share price and volume for signs of undue movement and must make an announcement–

(a) when, before the board of the offeree is approached, the offeree is the subject of rumour or speculation about a possible offer, or there is undue movement in its share price or a significant increase in the volume of share turnover, and there are reasonable grounds for concluding that it is the offeror or potential offeror’s actions which have directly contributed to the situation;

(b) where negotiations or discussions are about to be extended to include more than a very restricted number of people (outside those who need to know or are involved at that stage of the discussion and their immediate advisers) ;

(c) upon the signing of the sale and purchase agreement for the voting shares or voting rights of the offeree which will lead to the acquirer being obliged to extend a mandatory offer obligation.


9.07 Possible offer announcement (1) When an announcement is required to be made pursuant to subparagraphs 9.05(2) and 9.06(2)(b) to (d), but the intention to make an offer is premature or have not been firmed up, the offeror, potential offeror or offeree is required to make a brief announcement that negotiations are taking place

RULE 3 ADVISERS

3.01 An adviser must comply with all requirements under the Code and the Rules, and ensure that it explains to its client and its directors, their respective responsibilities under these Rules and the Code and use all reasonable effort to ensure that the client and its directors comply with these Rules and the Code. In cases of doubt, the SC must be consulted.

Premier says deal to take over majority shares in a bank to be formalised on July 19
BY JUDE TOYAT ON JULY 5, 2024, FRIDAY AT 6:00 PM

KUCHING (July 5): Sarawak Premier Datuk Patinggi Abang Johari Tun Openg has hinted at an official signing ceremony to acquire a majority stake in a bank, most likely to be the long-speculated Affin Bank, this July 19.
While he did not specifically name the bank, Abang Johari said that Sarawak is set to take over a major financial block, positioning itself as a dominant player in Malaysia’s banking industry.

“There is no more secrecy. By then, we will officially sign to take over this major block, which includes substantial shares, soon, July 19,” he said in a press conference during the Amanah Saham Sarawak (Assar) dividend announcement at Hikmah Exchange Event Centre here today.

Abang Johari noted that this acquisition symbolises Sarawak reclaiming its former assets.
“We once lost what we had, and now we are taking it back. Previously, we had six banks taken from us, and now we are reclaiming them. Now we even have our own bank.

“The bank we are acquiring is bigger than those six banks, and we aim to become a dominant player in Malaysia’s banking business.

“Sarawak will play a crucial role, God willing, and this is reflected in our investment portfolio, which aims to boost Sarawak’s economy significantly,” he said.

https://www.theborneopost.com/2024/07/05/premier-says-deal-to-take-over-majority-shares-in-a-bank-to-be-formalised-on-july-19/

https://theedgemalaysia.com/node/715949

How many zeros is RM1.25 trillion ? How much is 1% of RM1.25 trillion?

Maybe that explains why the regulator is taking so long to assess the (complex) application. A state takeover of a commercial bank, no ?

“If they want to migrate to Sarawak, I say can, so I want to suggest to the Premier (Datuk Patinggi Tan Sri Abang Johari Tun Openg) as well, when we have our own bank later, those wishing to migrate to Sarawak must have minimum deposit of RM2 million in our state-owned bank, or purchase property here for no less than RM1.5 million. …This at least can generate income for our state. They can also get permanent resident status in Sarawak,” Deputy Prime Minister Datuk Seri Fadillah Yusof said on 27 April 2024.

I would like to suggest people use ChatGPT or google and ask “What is the ownership structure of a state-owned bank?”

https://www.theborneopost.com/2024/04/27/minimum-rm2-mln-deposit-or-buy-rm1-5-mln-property-as-prerequisite-for-business-folks-migrating-to-swak-dpm-suggests/

https://www.theborneopost.com/2024/05/30/dr-sim-affin-maswings-acquisitions-not-under-ma63-negotiations/

https://www.theborneopost.com/2024/05/18/sarawaks-revenue-expected-to-hit-rm16-bln-this-year-says-abg-jo/

Sarawak's revenue is expected to hit RM16 billion this year. Every year expected to grow.
Sarawak can swallow Affin, easily.
My conviction remains. Affin will be gobbled up by Sarawak.

https://www.thestar.com.my/news/nation/2024/03/06/auditor-general039s-report-negative-balance-reported-in-ltat-reserves

LTAT need money.

Either the government bailout LTAT with taxpayer money AGAIN or LTAT find a commercial solution on its own .

Even WEIRDER is that EPF only dispose Affin.

Malaysia has 10 listed banks. EPF choose to dispose ABB while purchased ALL of the rest. Interesting right?

Did EPF send a team to do a due diligence on ABB? I doubt.
Did ABB management allow EPF team to look into its books other than publicly available information? I doubt.
Did ABB fail BNM stress test ? Nope.
Did Affin Capital Adequacy Ratio and Liquidity Coverage Ratio (or other metrics like Loan loss coverage etc) fall below regulatory requirement or below its peer average? Nope.
Did any rating company downgraded ABB debt facilities? Nope.
Is ABB Gross Impaired Loan much higher than its peers? Nope.
Did ABB fail to make its ROE greater than its cost of capital? Nope.
Is ABB trading at premium compared to its peer? Nope. In fact the cheapest.

All the challenges especially macroeconomic challenges that ABB is facing is also faced by all other banks. So why did EPF choose to dispose Affin only? I also don’t know. :)

But then, EPF total funds is RM 1 TRILLION. The transacted value in ABB is just a drop in the ocean. I don’t know what they are doing or trying to do with this disposal.

Haha. I wish @metaverse. If I'm fund manager, you would see XXX fund owns 4.9% of ABB already in the shareholders list! Unfortunately, I do not have OPM to take large stake in ABB. I am just a small fish investor. I am a minority shareholder of ABB. I have a vested interest in ABB. I am bullish on ABB since long time. I did went to post graduate business school at Cass. I had investment experiences. I have much interest in finance. I read a lot. I am investing for my own only. Maybe Affin IB should offer me a job though. PM me the offer! Haha. :P

From Boustead Holdings Berhad Independent Adviser Circular to Shareholders by Kenanga Investment Bank :

"We are of the view that the PBR is the most appropriate valuation methodology for ABB due to, amongst others, the following: (i) We have adopted the PBR valuation methodology in arriving at the estimated value of ABB in view that ABB Group constitutes financial entities.

For a financial entity, the NA size can be an important driver of future potential earnings and hence its valuation given that the size of the NA would, amongst other, determine the scale of financing activities for the financial entity to undertake. Further, the assets of financial entities are largely in the form of financial assets such as loans, government and corporate bonds and equity investments, whereby these assets as well as the investment financial entities’ liabilities are recorded at current market values as at the balance sheet date as reported in the financial entities’ audited financial statements.

As at 31 December 2022, more than 90% of ABB’s unaudited total assets comprise of cash, deposits, financial assets and loans. The book values of such assets are expected to be close to the market value.

We are of the view that the carrying values of these assets are expected to approximate to their fair value after taking into consideration, amongst others, the nature of cash and deposits which are expected to be relatively liquid as well as the annual impairment review on the financial assets and loans being conducted on the carrying value of these assets. ABB has provided allowance for impairment losses on financing and other financing as well as impairment losses on other assets. Based on information made available, as at the LPD, we are of the view that there is no indication of potential impairment which may be required on the carrying values of these assets as at 31 December 2022.

Premised on the above, we are of the view that the PBR approach would be most appropriate valuation methodology to value ABB "

Indeed the assets quality of Affin has always been doubt by the market. That explains the huge discount. Mainly it’s because of their affiliation with LTAT and Boustead.

At the same time, I think the market failed to recognise that no matter how badly managed these two institution are, they have an IMPLICIT guaranteed from MOF (the government)… yes in other words, taxpayer money. It is not too-big-to-fail case ; but too-political-important-to-fail. It’s just like Tabung Haji. You do not want to upset the people from the Armed Forces.

Eventually these implicit guaranteed, became an explicit guaranteed from the government. Just like what happened few months ago, the MOF guaranteed the RM2 billion loan for LTAT/BHB in Oct 2023 for them to takeover BPlant and remaining to settle the debt due in December 2023. Yes, almost 900 million loan guaranteed by MOF for LTAT/BHB to settle their debt (sukuk) that was due in Dec 2023. (correct, NEW debt to pay OLD debt, but this time EXPLICIT guarantee by government. From implicit to explicit..).

These assets quality in question…however improbable to default were to crystallise, ultimately, it won't be Affin Bank's problem. It will be Malaysians' problem.

Maybe this short opinion shall explain why our Ringgit is always on pressure..and hitting low. The country debt and liabilities is RM1.45 trillion .. excluding those implicit guarantee commitments.

ps : US banks and our banks, especially Affin are ocean wide different. Ours are relatively “easier" to value due to the almost non existence of complex structured derivatives in their books. Here, mostly plain vanilla kind derivatives only.

I have explained in my blog
https://klse.i3investor.com/web/blog/detail/LTATneedToSellAffinBank/2024-02-14-story-h-188452748-The_Reasons_I_Believe_Sarawak_Will_Trigger_Mandatory_General_Offer_MGO_

sarawak, ltat and mindef (government) wants to redistribute some wealth to the people.

I posted the below 2 weeks ago. I'll copy and repost :

I believe that the purchase consideration for Affin Bank (ABB) is going to represent an average PBR of 1.3 times (with minimum 0.90). Coincidentally, BEA invested in ABB at 1.3 PBR times in 2007. It is my humble opinion. It is fine that you think it's a crazy valuation from me. We can agree to disagree. Everyone is entitled to their opinion.

Basis of and Justification for the Price Book Ratio (PBR) : precedent transactions involving the acquisition of financial institutions listed in Malaysia as below

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=226950&name=EA_DS_ATTACHMENTS

(page 8 : refer to 20/313).

Selected precedent transactions involving the acquisition of financial institutions listed in Malaysia PBRs ranging from 0.93 times to 2.35 times over the last 15 years from 2007 are as follows:

2013 Bank Islam Malaysia Berhad BIMB Holdings Berhad 1.88

2008 Bank Muamalat Malaysia Berhad DRB-Hicom Berhad 2.15

2018 Asian Finance Bank Berhad MBSB 1.30

2013 Hwang DBS Affin Holdings 1.28

2012 OSK Investment Bank Berhad RHB Capital Berhad 1.77

2012 ECM Libra Investment Bank Berhad Kenanga Investment Bank Berhad 1.27

2011 RHB Capital Berhad Aabar Investments 2.35

2011 EON Capital Berhad Hong Leong Bank Berhad 1.42

2008 EON Capital Berhad Primus Pacific Partners 2.21

2008 RHB Capital Berhad Abu Dhabi Commercial Bank 2.18

2007 Affin Holdings Bank of East Asia 1.30


2007 MIDF PNB 0.93

2007 RHB Capital Berhad Employees Provident Fund of Malaysia 1.76

2007 AMMB Holdings Berhad Australia and New Zealand Banking Group 1.29

hopefully the price will be premium times price book ratio ... that's also typical price for controlling stake.

https://www.facebook.com/unitkomunikasidanpenerangansarawak/videos/1445819359341639

watch from clip 34:00/54:56 onwards for 1 min

"that is why you have been reading of our move to take a majority stake in one commercial bank....... "

"...... that is why we must have OUR OWN commercial bank that will give support to our private sector... "

https://theedgemalaysia.com/article/anz-claims-unable-control-ambank-says-report

ANZ, yes, we know you can’t just turn up and demand things. We know you don't CONTROL or OWN the bank despite 24% stake in the bank and the nomination of two of directors to its board. Not even at 30%. :)

“Maybe in one or two months, we will have our own bank and the structure I cannot reveal to you tonight...“I will reveal at the right time how we want to structure the bank. In other words, this bank will be the bank that boosts our small-medium enterprises (SMEs) because we want our SMEs to be very active and participate in our expanding economy,”

excerpt from news article : https://www.theborneopost.com/2024/02/14/sarawak-to-continue-pursuing-economic-restructuring-this-year-under-pcds-2030-says-abg-jo/

“I will reveal …. HOW WE WANT TO STRUCTURE THE BANK..” ??!!

Tan Sri Abang Johari, how big is Sarawak shareholding block that will ALLOW you to STRUCTURE the bank the way you want ? It’s definitely NOT 30% ! It is obvious with that kind of confidence level, I think you must be referring to a shareholding block of 50% at minimum!! You need to buyout Bank of East Asia’s stake for you to “structure the bank"

ps : Temasek Holdings and Ong Beng Seng via Vertical Theme Sdn Bhd is the largest shareholder with 29% shareholding in Alliance Bank Malaysia Berhad (ABMB) . ABMB second largest shareholder is EPF with 10% shareholding only. ABMB has only 2 non-independent directors out of total 10 directors.

Do you think the Singapore sovereign wealth fund & Mr Ong, a Singaporean think they “own” Alliance Bank or “structure Alliance bank the way they want"? Hmmm… Let alone Affin Bank second largest shareholder has 24% shareholding (already with 2 nominee directors in the board as part of their agreement with Affin)

Sarawak to Take Over Bintulu Port and Establish State Bank
SIBU, 13 Feb - Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, revealed plans for significant developments aimed at bolstering the state's economic sovereignty.
"In June 2024, we are going to take over Bintulu Port to Sarawak," declared Premier, highlighting a pivotal move for the state's economic autonomy.
The port, which has been under federal government control for the past 43 years, will now fall under the authority of Sarawak as per the constitution.
"We have negotiated, and the federal government has agreed to give back the port to Sarawak," he added, emphasizing the successful conclusion of talks between the state and federal authorities.
He said this in his speech during Annual Chinese New Year Gathering 2024 organised United Chinese Association Sibu Division Sibu Kingwood Hotel.
Furthermore, Abang Johari revealed plans to establish a unified ports authority in 2024, consolidating all ports under one governing body.
"All the ports will be under one authority, and we will introduce a law to that effect," he stated, underlining the state's commitment to streamlining port operations and management.
Addressing the financial challenges faced by Sarawak, The Premier unveiled plans to establish a state-owned bank.
"Sarawak has had difficulty obtaining loans from peninsular banks, as our local banks were absorbed by larger institutions," he explained.
Negotiations to acquire a significant stake in Affin Bank are nearing completion, with the Premier expressing optimism about Sarawak's imminent ownership of its own bank.
"Maybe in one or two months, we will have our own bank," he projected, withholding details about the bank's structure until the appropriate time.
Highlighting the strategic significance of the state bank, he emphasized its role in bolstering Small and Medium Enterprises (SMEs) and fostering economic growth.
"This bank will boost our SMEs, making them very active participants in our expanding economy," he affirmed, outlining the bank's pivotal role in Sarawak's economic development strategy.
Also present were, TYT Yang di-Pertua Negeri Sarawak, Tun Dr. Wan Junaidi Tuanku Jaafar and wife, Toh Puan Fauziah Mohd Sanusi, Premier's wife Datuk Amar Hajjah Juma'ani Tun Tuanku Bujang, Deputy Premier Prof. Datuk Amar Dr. Sim Kui Hian and wife, Minister of Tourism, Arts and Culture Malaysia Dato Sri Tiong King Sing, Minister for Tourism, Creative Industry and Performing Arts Dato Sri Haji Abdul Karim Rahman Hamzah and other distinguished guests.

"Thirdly, we also aspire to have a major stake in a commercial bank to provide Sarawak a financial platform to boost the economy further through the development of SMEs and entrepreneurship. Sarawak already has some stakes in this particular bank and we want to increase our stake. I am confident that we can conclude the negotiations soon so that we can participate actively in the running of the bank and be able to serve Sarawak’s interest well. "

https://www.youtube.com/watch?v=PnKmW9n7DJo&ab_channel=TVS
(clip 5:00/13:00)

Gong Xi Fa Cai, Xin Nian Kuai Le

https://www.thestar.com.my/news/nation/2024/02/09/sarawak-aims-to-finalise-three-strategic-goals-in-2024-says-abang-jo

Under CMSA interpretation of PAC, I think LTAT and Boustead Holdings (BHB) will be construed as PAC if Sarawak pursuant to an agreement, arrangement or understanding to acquire shares for the purpose of obtaining control of Affin Bank whether jointly or severally.

The Financial Services Act 2013 (FSA) that regulates licensed bank only set limit for individual shareholdings to 10% and does NOT set limit for institution shareholders. Any acquisition of multiple 5% required BNM approval and; for CONTROLLING stake, with the Minister and BNM approval.

Also if one were to understand the Capital Market Services Act 2007 (CMSA) that regulates all listed companies (including listed licensed banks), Sarawak and PERSON ACTING IN CONCERT (PAC) would be obligated to extend the mandatory general offer (MGO) to all shareholders if Sarawak and PAC raised its stake to more than 33% voting shares .

https://www.youtube.com/watch?v=l6-NRV513ow&ab_channel=TVS

“Like I mentioned earlier in Kuala Lumpur, we have an interest in Affin Bank and the discussions have been conclusive. It is just a matter of formality from Bank Negara Malaysia and we are going to be the block shareholder,”

https://www.theborneopost.com/2024/02/05/swak-aims-to-be-block-shareholder-in-affin-bank-says-premier/

Sarawak to have own commercial bank by end February, says premier.

Feb 5 — Sarawak Premier Tan Sri Abang Johari Openg today said the state government is expected to complete the acquisition of majority shares of a commercial bank by this month.

He said the state government is in the final stage of negotiation.

“Pray that we will have our own commercial bank some time this month when we will take over a commercial bank where the majority of the blocks will be owned by Sarawakians,” he said at the Centre of Technology Excellence Sarawak graduation ceremony here.

https://www.malaymail.com/news/malaysia/2024/02/05/sarawak-to-have-own-commercial-bank-by-end-february-says-premier/116451

"The Premier of Sarawak added that the process of hiring another entity, which is the transaction of increasing the state government’s shares in Affin Bank, is also going smoothly."

https://ukas.sarawak.gov.my/2024/02/05/sarawak-has-complete-ingredient-to-boost-economy/?fbclid=IwAR1QdNkGUwIQZEyys_n81pARAP0fb7dJ4A99x2L4NWO0A9npzYqnSSZGdIc

I believe that the purchase consideration for Affin Bank (ABB) is going to represent an average PBR of 1.3 times (with minimum 0.90). Coincidentally, BEA invested in ABB at 1.3 PBR times in 2007. It is my humble opinion. It is fine that you think it's a crazy valuation from me. We can agree to disagree. Everyone is entitled to their opinion.

Basis of and Justification for the Price Book Ratio (PBR) : precedent transactions involving the acquisition of financial institutions listed in Malaysia as below

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=226950&name=EA_DS_ATTACHMENTS

(page 8 : refer to 20/313).

Selected precedent transactions involving the acquisition of financial institutions listed in Malaysia PBRs ranging from 0.93 times to 2.35 times over the last 15 years from 2007 are as follows:

2013 Bank Islam Malaysia Berhad BIMB Holdings Berhad 1.88

2008 Bank Muamalat Malaysia Berhad DRB-Hicom Berhad 2.15

2018 Asian Finance Bank Berhad MBSB 1.30

2013 Hwang DBS Affin Holdings 1.28

2012 OSK Investment Bank Berhad RHB Capital Berhad 1.77

2012 ECM Libra Investment Bank Berhad Kenanga Investment Bank Berhad 1.27

2011 RHB Capital Berhad Aabar Investments 2.35

2011 EON Capital Berhad Hong Leong Bank Berhad 1.42

2008 EON Capital Berhad Primus Pacific Partners 2.21

2008 RHB Capital Berhad Abu Dhabi Commercial Bank 2.18

2007 Affin Holdings Bank of East Asia 1.30


2007 MIDF PNB 0.93

2007 RHB Capital Berhad Employees Provident Fund of Malaysia 1.76

2007 AMMB Holdings Berhad Australia and New Zealand Banking Group 1.29

maybe I should share a TikTok link because I was told many people use TikTok now instead
https://www.tiktok.com/@bilikberitacats/video/7330053967101152514

"we are more of less CONCLUSIVE in terms of our discussion with LTAT"

actually, not many people read this forum on Affin Bank i think. Yesterday i shared two Youtube news links : https://www.youtube.com/watch?v=QfE4q6VRzdk&ab_channel=AstroAWANI and https://www.youtube.com/watch?v=LEJmXgGJtbs&t=29s&ab_channel=TVS
to see how many people actually read or listen since i shared the link ... Very little...

https://theedgemalaysia.com/node/699220

Press conference has been made. Many other news outlet has reported all over. They should announce the proposed deal as soon as possible rather than let market speculates for the interest of market integrity, fairness and investor confidence in the capital market.

We all can “maybe this, maybe that” , on and on .

LTAT should issue a statement stating the reason rather than let people speculate.

We also didn’t know why PM changed the Defence Minister in December . This new Minister now wants to appoint his people to lead LTAT? Get used to LTAT revolving door .

Endless possibilities… I doubt any conjectures will help the public perceptions of LTAT.

https://youtu.be/QfE4q6VRzdk?si=dPX7r70Wkq5knxUm


https://youtu.be/LEJmXgGJtbs?si=aYB5dhoWco6KczGu

“Dekat … very soon “

I think it’s just depends on how soon BNM approve . We know how efficient Malaysia authority works ..

My recent experience with local council .. “orang tugas hari ini MC” , “oh esok public holiday ya” (yes Malaysia has one of the most bank holidays in the world) … last week Thaipusam , today federal territory, next week CNY . 😆 eh change Agong no holiday ka? Agong birthday got holiday right ? .
Add in the MC .. sakit holiday .. think will have to wait slightly longer for the approval .

https://theedgemalaysia.com/node/699142
"We are more or less conclusive in terms of our discussions with LTAT" ... means it's confirm.