Affin eyes bigger stake in insurance firm

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

KUALA LUMPUR: Affin Holdings Bhd is seeking to boost its stake in associate firm AXA Affin General Insurance Bhd (AAGI), in which it currently holds 34.51% equity interest.

The financial services provider told Bursa Malaysia that Bank Negara had stated it had no objection in principle for it to start negotiations with Felda Marketing Services Sdn Bhd, AXA Asia and subsequently with the minority shareholders to acquire additional shares in AAGI.

The consent is subject to all parties concluding negotiations within six months from the date of the central bank’s letter (March 25).

“Further, the said consent is not to be construed as approval for the proposal,” Affin said.

On concluding negotiations, it would be required to get the prior approval of Bank Negara before entering into any agreement to effect the proposal.

AAGI, incorporated in 1975, is principally engaged in the underwriting of all classes of general insurance business. In 2011 it merged with BH Insurance (M) Bhd.

The Armed Forces Fund Board (LTAT) owns a 35.4% direct stake in Affin Holdings and a 20.7% stake through its subsidiary Boustead Holdings Bhd, making it among the top five insurers in the country.

Affin shares closed unchanged at RM2.32 on Friday.