Bank Negara gives Affin six more months to finish negotiations

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

KUALA LUMPUR: Bank Negara has given Affin Holdings Bhd six more months to conclude negotiations with Felda Marketing Services Sdn Bhd to buy the latter’s stake in AXA Affin General Insurance Bhd (AAGI).

In an announcement to the stock exchange, Affin said the central bank had informed that it had no objection to the request for an extension up to Aug 5 to complete the discussions.

In October last year, the Armed Forces Fund Board’s financial services arm secured three more months from Oct 28 from Bank Negara to reach a deal with Felda Marketing Services.

AHB, which already holds 34.51% equity interest in AGI, had in March last year received the central bank’s go-ahead to start negotiatios with Felda Marketing Services, AXA Asia and subsequently the minority shareholders to acquire the additional AAGI shares.

AHB currently has a controlling 51% stake in its life insurance operation, AXA Affin Life Insurance Bhd.