Posted by TheContrarian > 2024-01-19 09:29 | Report Abuse

An institution is allowed to hold up to 20%, so shouldn't be a problem. Above that level is going to be hard to justify.

Posted by Bursino > 2024-01-19 12:32 | Report Abuse

Minister of Finance can approve share holdings exceeding 20%. 😃

Posted by aklobi > 2024-01-19 15:14 | Report Abuse

Affin keeps on impressing.. one of the best investments I had. Especially the fact that they do DRPs is in itself and added value to the stock. I wish other companies had the same policy.

Posted by TheContrarian > 2024-01-23 19:27 | Report Abuse

Kenanga has issued a downgrade call on Affin with target price of only RM1.90.

Posted by TheContrarian > 2024-01-23 19:27 | Report Abuse

Hope nobody here panics.

Posted by TheContrarian > 2024-01-24 18:12 | Report Abuse

Already over 2 weeks since the leak that Sarawak negotiating to buy additional 15% stake in Affin. Now it's quiet, has negotiation broken down? LTAT wants a higher price but Sarawak offering peanuts.

Posted by speakup > 2024-01-24 21:23 | Report Abuse

biasalah. Sarawak & Abang Johari is smart, wont overpay for a small bank like Affin

Posted by aklobi > 2024-01-24 23:27 | Report Abuse

Sarawak's foot is already in the door with it's 5%. 80% the deal will go through at some agreeable price.

Posted by rohank71 > 2024-01-25 02:00 | Report Abuse

surely there will be a deal its just at what price and will there be a GO... let's wait... no risk its a bank anyway regulated by BNM. unless u don't trust BNM than don't buy shares.

Posted by TheContrarian > 2024-01-25 08:04 | Report Abuse

@rohank71, only acquiring additional 15%, no GO. LTAT remains controlling shareholder. LTAT needs the cash proceeds to pay for Bplant takeover.

Posted by TheContrarian > 2024-01-25 08:05 | Report Abuse

LTAT approached Sarawak as no one else wants to buy. Sarawak trying to buy cheap.

Posted by TheContrarian > 2024-01-25 22:47 | Report Abuse

EPF still selling Affin.

Posted by rohank71 > 2024-01-26 10:21 | Report Abuse

#contrarian, I agree what's reported is 15% but why does Swak Gov want to remain the 3rd largest shareholder when they have a "once in a life time" chance to be the largest. the sale of 15% is just 330M shares, which is not enought to pay LTATs debts.

Posted by rohank71 > 2024-01-26 10:22 | Report Abuse

also for Swak why pay premium to buy a block just to get 20%.... on LTATs side might as well sell at higher price with control.

Posted by rohank71 > 2024-01-26 10:24 | Report Abuse

LTAT will not be able to sell the balance shares if they miss the opportunity now.

Posted by TheContrarian > 2024-01-26 16:30 | Report Abuse

20% gives Sarawak BOD seat to influence Affin to expand branch network in Sarawak. Umno will not let LTAT sell off Affin like Bplant's case.

Posted by Bursino > 2024-01-26 16:44 | Report Abuse

To take it to the extreme, you can even print your own currençy when you owned a Bank. 😁

Posted by Bursino > 2024-01-26 16:48 | Report Abuse

Reported in 2016
"I propose for the state government to set up its own bank named Bank of Johor.

Posted by Bursino > 2024-01-26 16:50 | Report Abuse

Sarawak Government is decoupling and moving towards self sustainability.

Posted by TheContrarian > 2024-01-26 17:57 | Report Abuse

OMG, EPF continues selling Affin.

Posted by aklobi > 2024-01-26 18:06 | Report Abuse

@TheContrarian, since i have ever known Affin and EPF has always been selling. Nothing to see here

Posted by TheContrarian > 2024-01-26 20:57 | Report Abuse

If EPF continues to sell it takes longer time to reach RM3, maybe 3 years.

Posted by hhhiii123 > 2024-01-26 21:09 | Report Abuse

kenang tp 1.90 for fun?

Posted by TheContrarian > 2024-01-26 21:34 | Report Abuse

You need to ask Kenanga why they set tp 1.90.

Posted by TheContrarian > 2024-01-26 22:51 | Report Abuse

Why is EPF selling with urgency? Why doesn't EPF wait until RM3 before selling?

Posted by aklobi > 2024-01-26 23:50 | Report Abuse

I have never trusted Kenanga's TPs. That is after monitoring their research for over 10 years now. As for EPF, the urgency is urgent and cannot wait for any Sarawak deal or a target price. They need the money now, not tomorrow, hence they are selling. If it's a sign for anything, it's a sign that they are desperate. EPF is not supposed to be a daily trader, but a fund.

Posted by rohank71 > 2024-01-27 10:20 | Report Abuse

to answer why EPF selling.
If U had 1M shares bought at avg of below 2.00 wouldnt U sell at least 5% or 50K shares at 2.40 and reduce position. sell another 5% at 2.60 and so on. this is called trimming position.

Posted by rohank71 > 2024-01-27 10:21 | Report Abuse

so harm trimming ur position a little if U had bought cheap. EPF also sold UMW before the GO was announced..

Posted by rohank71 > 2024-01-27 10:23 | Report Abuse

any deal has a chance to be terminated so if U a long term investor, it is best to trim as the price goes up and the balance for the KILL.. if the deal gets terminated, u still have the position to buy when it drops. this is simple risk management.

Posted by speakup > 2024-01-27 10:45 | Report Abuse

rohank71 is right. in fact one sifu once told me: Big funds sell on the way up, buy on the way down

Posted by stockraider > 2024-01-27 11:00 | Report Abuse

The kenanga article of valuing Affinbank at absurb Rm 1.90 has ulterior motive of depressing Affin price loh!

U ask yourself who is the biggest shareholders of Kenanga......answer Swk Govt loh!
Thus valuing affin bank serve the Swk Govt objective thus Kenanga valuation unreliable mah!

Put it this way loh!
.Affin has this financial info per share loh!

1. NTA Rm 4.70
2. EPS Rm 0.24
3. Div per share Rm 0.125.

Thus if u r the acquiring party taking a controlling block, it is far u pay a reasonable attractive price for Affin which is price to book value of at least 0.7x which work out to Rm 3.30.

Thus PE of affinbank around 13.7x.
Div yield 3.8%

As Affin bank is acquired at a discount of Rm 3.30, what need to do is to improve the current ROE of Affin of 4.6% to 7.5% and that will improve the eps of affin bank from rm 0.24 to Rm 0.39 loh!

With Eps of 39 sen....that will more than justify the acquisition price of Rm 3.30 at pe 8,5x loh!

So worth it for potential acquirer loh!

Posted by rohank71 > 2024-01-27 13:05 | Report Abuse

who are shareholders of Kenanga?

Posted by aklobi > 2024-01-27 13:10 | Report Abuse

Glad to see the wider majority investors in Affin can see through it's real value which is way higher despite the disruptive side noise.

Posted by TheContrarian > 2024-01-27 19:06 | Report Abuse

Sarawak pays Kenanga to write a downgrade report on Affin, then goes to LTAT and offer RM2.30.

Posted by rohank71 > 2024-01-27 22:18 | Report Abuse

BPlant & Bstd GO cost abt 1.9B to LTAT.
LTAT has abt 690M Affin. at 2.80 to 3.00 can pay off the GO Loan. Not sure if LTAT need more money to pay DV to their contributors/army.

anything below 3.00 doesn't achieve LTATs objective.

Posted by rohank71 > 2024-01-27 22:20 | Report Abuse

MBSB and MIDF done at Price to Book of 0.8 times

Posted by TheContrarian > 2024-01-27 22:58 | Report Abuse

Federal government aiding LTAT in the MGO of Boustead and Bplant. LTAT doesn't need to give up Affin but need money to pay good dividend to its members.

Posted by TheContrarian > 2024-01-27 22:59 | Report Abuse

Official news is additional 15% stake to be sold. Some people just spreading bullshit about a takeover.

Posted by TheContrarian > 2024-01-28 09:16 | Report Abuse

Oh yes, it was the Asset Management company that was sold.

Posted by TheContrarian > 2024-01-28 09:22 | Report Abuse

The top 30 shareholders of Affin own 87.7%. There's not much free float in the open market.

Posted by TheContrarian > 2024-01-28 09:25 | Report Abuse

EPF is 4th largest shareholder at 6.5%, Sarawak 5th at 4.9%. The top three are LTAT, Bank of East Asia and Boustead.

Posted by TheContrarian > 2024-01-28 09:55 | Report Abuse

LTAT and Boustead currently owns close to 50% , so there's no way of an hostile takeover. The only takeover is one that's decided by the Federal government such as Maybank or CIMB or RHB or even MBSB taking over Affin. Then it will be done at a price of at least 1 time book value.

Posted by stockraider > 2024-01-28 10:30 | Report Abuse

There is no hostile takeover loh!
Whoever wants to buy substantial Affin bank, need friendly cooperations with LTAT loh!

Posted by TheContrarian > 32 minutes ago | Report Abuse

LTAT and Boustead currently owns close to 50% , so there's no way of an hostile takeover. The only takeover is one that's decided by the Federal government such as Maybank or CIMB or RHB or even MBSB taking over Affin. Then it will be done at a price of at least 1 time book value.

Posted by stockraider > 2024-01-28 10:32 | Report Abuse

Since ROE of Affin is low....mkt can only pay lower than book value which is about 0.7x of the book value loh!

Posted by metaverse > 2024-01-28 11:13 | Report Abuse

Affin Bank is the smallest bank in Malaysia so it is kind of interesting that it has attracted the attention of the Sarawak government. Sarawak is the most powerful state in Malaysia which is asking to increase their parliament seats to more than 30%. With this kind of political ambition it is unlikely that Sarawak will be pleased with only a five percent stake in Affin Banks.

Posted by stockraider > 2024-01-28 11:20 | Report Abuse

Swk can buy 20% stake in Affin Bank without BNM approval loh!
Beyond 20% they need BNM approval, i think if SWK govt really want to exceed 20%, they can easily obtained BNM approval mah!

I think the appropriate stake for SWK state is 20% n beyond loh!

Posted by metaverse > 3 minutes ago | Report Abuse

Affin Bank is the smallest bank in Malaysia so it is kind of interesting that it has attracted the attention of the Sarawak government. Sarawak is the most powerful state in Malaysia which is asking to increase their parliament seats to more than 30%. With this kind of political ambition it is unlikely that Sarawak will be pleased with only a five percent stake in Affin Banks.

Posted by aklobi > 2024-01-28 13:11 | Report Abuse

Wow, great debate!

Posted by Bursino > 2024-01-28 18:06 | Report Abuse

Instincts tell me Affin Bank will declare Bonus issue 1:1. NTA 4.69. Current price hovering at 2.40. Ngam Ngam..

Posted by TheContrarian > 2024-01-28 19:31 | Report Abuse

@metaverse, how to do a takeover if there's no way to acquire 50% plus one share?

Posted by TheContrarian > 2024-01-28 19:35 | Report Abuse

@Busino, if Affin does a 1 for 1 bonus issue, price will be adjusted to RM1.20 and if later price drops below RM1 some funds are prohibited from buying shares below RM1.