KUALA LUMPUR: Affin Bank Bhd shares surge in early trade today after Sarawak Premier Tan Sri Abang Johari Tun Openg said the state government will finalise the acquisition of a majority stake in the bank this week.
At 10.30am, the stock rose 10 sen or 4.88 per cent to RM3.01 from its last closing price of RM2.87 last Friday, giving it a market capitalisation of RM7.13 billion.
On Saturday, Abang Johari said all matters related to acquiring a major stake in the bank, including meeting the requirements set by Bank Negara Malaysia, had been resolved.
"We intend to take over this bank soon. Everything is settled, including (approval from) BNM. You will hear the announcement within a week," he said at the 100th anniversary celebration of Rumah Samu in Kuching.
On July 30, Abang Johari reportedly said the Sarawak government was expected to finalise the sale and purchase agreement (SPA) of a major stake in Affin Bank from Lembaga Tabung Angkatan Tentera (LTAT) within a month.
According to Abang Johari, Bank Negara had granted conditional approval, thus the SPA was expected to be finalised within a month.
On Jan 8 this year, Affin Bank, in a notice to Bursa Malaysia, said Affin Bank's major shareholder LTAT had confirmed it was in discussions with the Sarawak State Financial Secretary regarding a "possible transaction involving additional shares".
As of Dec 29 last year, the Sarawak State Financial Secretary held a 4.79 per cent stake in Affin Bank, while LTAT was the largest shareholder with 28.78 per cent.