Thursday, July 28, 2011

#Flash* No indication from AFG major shareholders to sell stake, says chairman

KUALA LUMPUR: ALLIANCE FINANCIAL GROUP BHD []'s (AFG) board has received no indication from its substantial shareholders of any intention to sell its stake in the financial services group or the entry of a new shareholder, said AFG chairman Datuk Oh Chong Peng.

"We have not been informed of any intention to exit. (In light of a trend toward industry consolidation), we are happy as we are as a domestic bank. There is no reason for us to seek mergers and acquisitions,"
Oh told reporters after AFG's annual general meeting.

It was earlier speculated that Langkah Bahagia Sdn Bhd ' a vehicle believed to be linked to former finance minister Tun Daim Zainuddin ' was looking to sell its entire 14.8% effective stake in AFG, held through Vertical Theme Sdn Bhd.

AFG's single largest shareholder, Vertical Theme holds a 29.06% stake. Vertical Theme is 49% owned by Singapore sovereign wealth fund Temasek Holdings Ltd while Langkah Bahagia holds the remainder 51% interest.

Market talk had also been rife that Singapore's DBS Group was looking to take up a stake in a Malaysian banking group and AFG was said to be a potential target.

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