KUALA LUMPUR (Jan 8): Affin Bank Bhd shares touched a five-year high during the morning session on Monday, following a report by The Edge Malaysia weekly indicating that the Sarawak state government was poised to increase its stake in the bank.

The stock opened at RM2.18, jumping by 24 sen or 11.01% to hit a five-year high of RM2.43, then retraced slightly to RM2.41, maintaining a gain of 23 sen or 10.55% at the time of writing, with 8.68 million shares changing hands.

At RM2.41, the banking group’s market capitalisation stands at RM5.66 billion.

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A report by The Edge Malaysia weekly on Monday said that the Sarawak State financial secretary is close to finalising a memorandum of understanding, potentially leading to an agreement to acquire an additional stake in Affin Bank Bhd from Lembaga Tabung Angkatan Tentera (LTAT).

Currently, Sarawak holds a 4.95% stake in the banking group and is interested in acquiring an additional 15% from the armed forces fund, which directly owns 29.7% of the banking group. Meanwhile, its wholly owned unit Boustead Holdings Bhd holds a 20.65% stake.

If the shares successfully change hands, Sarawak state will become Affin’s third-largest shareholder, holding approximately 20%, following the Bank of East Asia with a 23.79% stake.

It is also understood that the target is to conclude the memorandum of understanding before the end of the year.

https://www.theedgemarkets.com/node/696542