Affin, Daiwa talks extended for four months

Affin, Daiwa talks extended for four months
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KUALA LUMPUR (Nov 9): Affin Holdings Bhd has obtained a four-month extension from Bank Negara Malaysia (BNM) to complete its negotiations with Japan's Daiwa Securities Group Inc over the latter's proposed acquisition of a minority stake in its investment banking arm, Affin Hwang Investment Bank Bhd (Affin Hwang IB).

In a filing with Bursa Malaysia today, the banking group said the central bank has granted it up to Feb 29, 2016 to complete the negotiations with Daiwa.

"Further announcements will be made as and when there are material developments pertaining to the proposal," said Affin.

According to Affin, BNM gave the greenlight, vide its letter dated Nov 6, stating that the central bank has no objection to Affin's application.

In May this year, Affin said it will commence negotiations with Daiwa for the latter to acquire a minority stake in Affin Hwang IB, after it obtained the approval from BNM on April 29.

The approval, however, is subject to the two parties concluding negotiations within six months from the date of the said letter.

"The said approval should not be construed as approval for the proposal. Upon concluding negotiations, Daiwa and Affin would be required to obtain the prior approval of BNM pursuant to the Financial Services Act 2013, before entering into any agreement to effect the proposal," according to Affin's earlier filing.

Shares in Affin closed down one sen or 0.41% at RM2.42 today, for a market capitalisation of RM4.72 billion.

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