Sarawak's Affin Bank takeover delayed, pending regulatory approval

The planned sale and purchase (S&P) agreement between Sarawak and the Armed Forces Fund Board (LTAT) for a controlling stake in Affin Bank Bhd has been delayed. The agreement was intended to increase Sarawak's stake in the bank from 4.8% to approximately 30%. Sources indicate the postponement is due to concerns over conditions that might be imposed by Bank Negara Malaysia (BNM). Instead, a memorandum of understanding (MOU) will be signed to explore strategic investments between the two parties.

Sarawak Premier Tan Sri Abang Johari Tun Openg and state dignitaries were already in Kuala Lumpur for the event. The MOU signing is seen as a preliminary step towards Sarawak potentially becoming a significant player in Malaysia’s banking sector. LTAT currently holds a 28.88% stake in Affin Bank, making it the largest shareholder.