PETALING JAYA: The Armed Forces Fund Board (LTAT) will remain a significant shareholder in Affin Bank Bhd even if its plan to sell a portion of its stake goes ahead, says defence minister Khaled Nordin.
Khaled said LTAT’s “proposal” to sell part of its stake in Affin Bank was reasonable and an “investment decision that would yield positive returns in the form of competitive and sustainable dividends”.
He said the sale would allow LTAT, which currently has a 48.7% stake in Affin Bank, to balance its investment portfolio according to the objectives laid out under the board’s Strategic Asset Allocation Framework.
“The proposed partial divestment of these shares to stakeholders with strong financial capability will provide higher value-added to the bank in terms of business growth and long-term increase in profitability.
“Besides, LTAT will remain a significant shareholder of Affin Bank if the sale is finalised,” he said in a written parliament reply.
In January, Sarawak premier Abang Johari Openg said negotiations with LTAT for the state government to acquire an additional stake in Affin Bank was set to be finalised soon.
The Sarawak government had a 4.95% stake in the bank after it bought 112.56 million shares in mid-April last year at RM1.97 per share, or RM221.74 million in total.
In December, The Edge reported that Sarawak was interested in acquiring an additional 15% stake in Affin Bank from LTAT, which owns a 29.7% stake in the bank, while its wholly owned unit Boustead Holdings Bhd has a 20.65% stake. - FMT
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