Affin Bank stake sale by year-end


By ELAINE ANG

Affin Holdings Bhd expects to complete the disposal of a 30% stake in wholly-owned subsidiary Affin Bank Bhd by the end of the year, said group managing director Datuk Lodin Wok Kamaruddin. 

The KAF group, the country's largest bond and money market trader, had signed a preliminary pact in August last year to buy the Affin Bank stake from Affin Holdings.  

Affin Merchant president and CEO Datin Zuraidah Atan (left) exchanging documents with Datuk Lodin. They are flanked by (from left) MNI vice-president Peter Ng, Affin Merchant senior vice-president corporate finance division Wan Hashimah Merican, Bousted director of financial services Daniel Ebinesan and Amanah Short Deposits CEO Megat Hisham Megat Mahmud.

Lately, however, there were reports that the KAF group was not keen to proceed with the purchase given the possibility its stake may be diluted in the second round of bank mergers. 

It was also reported a few weeks prior to the original Dec 31 deadline for completion of the deal that KAF had indicated its intention not to go ahead with the transaction. 

“One way or another, with or without KAF, we expect to complete the deal (to sell 30% of Affin Bank) by the year-end,” Lodin told a press conference yesterday after a signing ceremony between SCB Developments Bhd and Affin Merchant Bank Bhd to mark the completion of the documentation of a fund-raising programme by SCB Developments. 

“We are still in talks with the KAF group with regard to their participation in Affin Bank.  

“The negotiations have not been abandoned,” Lodin said. 

He also added that as announced last Friday, Affin Holdings had obtained from Bank Negara an extension of one month to Jan 31 to continue the talks. 

Affin Holdings was also looking into other options, he added, but declined to elaborate. 

Lodin said the Affin Holdings' banking arm had seen many improvements in its management, operations, products and services.  

He is therefore confident the bank would be in a good position to take on the challenges of the future. 

Recently, Affin Holdings had also injected an additional RM100mil into Affin Bank, increasing its paid-up capital to RM1.01bil.  

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