HwangDBS: BEA could sell Affin stake (5185)

HwangDBS Vickers Research says Bank of East Asia (BEA) could release
its 23.5 percent stake in Affin Holdings Bhd as it shifts its focus to
Greater China.


“A shift in BEA’s strategy to focus on Greater China could mean
that is no longer keen on leveraging on its relationship with Affin,”
the research house said in a note on Monday.


“This leads to our conjecture that it may release its stake in
Affin,” added HwangDBS, estimating the acquisition cost of BEA’s stake
in Affin at RM858 million.


BEA has been relinquishing its businesses in the U.S and Canada,
where it had once sought growth overseas in areas with large ethnic
Chinese populations.


Affin’s other major shareholders include Malaysia’s
Armed Forces Fund Board with a 35.2 percent stake and palm oil-to-heavy
industries conglomerate Boustead Holdings Bhd with 20.7 percent.


By 1021 am (0221 GMT), Affin was unchanged at RM3.26 a share,
underperforming the Malaysia’s benchmark stock index’s 0.41 percent
rise. -- Reuters