Affin needs more time to reach deal with Felda subsidiary

Affin Bank. AZMAN GHANI / The Star REPORTER: JOSEPH CHIN

KUALA LUMPUR: Affin Holdings Bhd (AHB) is seeking a second extension of time from Bank Negara Malaysia (BNM) to conclude talks to buy Felda Marketing Services Sdn Bhd’s 16% stake in AXA Affin General Insurance Bhd (AAGI).

In a filing with Bursa Malaysia, the financial services group said it had on Friday sent an application to BNM to get the central bank’s nod for a six-month extension.

In March last year, BNM gave its consent for AHB, which already has 34.51% equity interest in AAGI, to start negotiations with Felda Marketing Services, AXA Asia and subsequently the minority shareholders to acquire additional shares in AAGI. The consent was subject to all parties finishing the process within six months.

AHB subsequently asked for more time to reach a deal and clinched a three-month extension starting Oct 28, 2016.

“We will make further announcements as and when there are material developments pertaining to the proposal,” the company said.