Sarawak Explores Affin-AmBank Merger
Deal News | Apr 17, 2025 | EIN
The government of Sarawak is reportedly considering a merger between Affin Bank and AmBank Group. As the largest shareholder of Affin Bank, Sarawak is seeking to acquire a stake in AmBank to facilitate the merger, potentially elevating the combined entity to be Malaysia's fourth-largest banking group by assets. This development follows Sarawak's recent acquisition of additional Affin Bank shares, which increased its stake in the bank to 31.25%. The state had also previously entertained investments in other banking institutions, such as Bank Muamalat Malaysia Bhd and Kuwait Finance House (KFH) Malaysia, although these attempts were unsuccessful. Pricing remains a significant consideration, and discussions include interest expressed to AmBank founder Tan Sri Azman Hashim.
Sectors
- Banking & Finance
- Investment & Acquisition
Geography
- Malaysia – Both Affin Bank and AmBank Group are based in Malaysia, where the potential merger is planned to occur.
Industry
- Banking & Finance – The article focuses on a potential merger involving two major banking institutions in Malaysia - Affin Bank and AmBank Group.
- Investment & Acquisition – Sarawak's strategy involves acquiring shares and merging financial institutions, a typical activity within investment and acquisition sectors.
Financials
- RM5.16 – The closing share price of AMMB Holdings as of April 16, which is relevant for the valued assessment in the potential merger.
- RM17.03 billion – The market value of AMMB Holdings Bhd as of April 16.
- 31.25% – The current ownership stake that the Sarawak government holds in Affin Bank.
- RM6.29 billion – Market capitalisation of Affin Bank as of its share price on April 15.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sarawak Government | Bidding Company/Buyer | Government | Sarawak is the largest shareholder of Affin Bank and seeking to merge it with AmBank Group to create a larger banking entity. |
| Affin Bank | Target Company | Company | A Malaysian bank that Sarawak has a significant stake in and plans to merge with AmBank Group. |
| AmBank Group | Selling Company | Company | A Malaysian banking group potentially merging with Affin Bank under Sarawak's plan. |
| Tan Sri Azman Hashim | Shareholder | Person | Founder of AmBank, owns 11.83% of AMMB Holdings Bhd, the parent company of AmBank Group. |
| SG Assetfin Holdings | Investor | Company | A wholly-owned entity through which the Sarawak government holds its stake in Affin Bank. |