AFFIN Holdings Bhd. completed its reorganization with AFFIN Bank Bhd. becoming the bank holding company.
AFFIN Holdings said Oct. 16 that AFFIN Bank had under a share sale agreement completed the payment of 2.51 billion ringgit in cash and shares.
Under the agreement, AFFIN Holdings transferred Affin Hwang Investment Bank Bhd., AFFIN Moneybrokers Sdn. Bhd., AXA AFFIN Life Insurance Bhd. and AXA Affin General Insurance Bhd. to AFFIN Bank.
In a same-day extraordinary general meeting, AFFIN Holdings shareholders further approved the transfer of the group's listing status to AFFIN Bank, the New Straits Times reported. AFFIN Holdings will be liquidated following this transfer.
The reorganization simplifies the group's shareholding structure, AFFIN Holdings CEO Kamarul Ariffin Mohd Jamil said at the extraordinary general meeting. The group will move its focus to retail banking from the corporate business, he added, partly because the risks are lower when it comes to nonperforming loans.
The entire corporate exercise is expected to finish by the first half of 2018, the publication noted.
As of Oct. 16, US$1 was equivalent to 4.22 Malaysian ringgit.