AFFIN HOLDINGS BERHAD (“AFFIN”)
APPROVAL TO COMMENCE NEGOTIATIONS IN RELATION TO THE PROPOSED ACQUISITION OF A MINORITY STAKE IN AFFIN HWANG INVESTMENT BANK BERHAD (FORMERLY KNOWN AS HWANGDBS INVESTMENT BANK BERHAD) BY DAIWA SECURITIES GROUP INC. (“DAIWA”) OR ONE OF ITS WHOLLY-OWNED SUBSIDIARIES (“PROPOSAL”)
We wish to announce that Bank Negara Malaysia ("BNM") has, vide its letter dated 29 April 2015, stated that it has no objection in principle for AFFIN to commence negotiations with Daiwa in relation to the Proposal, subject to both parties concluding negotiations within 6 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.
We will make further announcements as and when there are material developments pertaining to the Proposal.
This announcement is dated 6 May 2015.