Affin Hwang Investment Bank to offload stake in asset management unit

Malaysia-based Affin Hwang Investment Bank Bhd. agreed to divest 68.35% of its stake in its Affin Hwang Asset Management Bhd. unit to CVC Capital Partners Ltd.-managed Starlight Asset Sdn. Bhd. for a provisional cash consideration of 1.54 billion ringgit.

Under the deal, the Affin Bank Bhd. unit will offload 7 million shares, equivalent to a 63% stake, for 1.42 billion ringgit, while selected Affin Hwang Asset Management key senior managers will divest 594,338 shares, or a 5.35% stake, for 120.4 million ringgit, according to a Jan. 28 release.

The consideration is subject to price adjustments as well as the terms and conditions set out in the share purchase agreement.

The deal is expected to be completed by the third quarter of 2022. Following the completion of the divestment, Affin Hwang Asset Management will cease to be a subsidiary of Affin Hwang Investment Bank.

Proceeds from the deal will be used to fund Affin Bank's group banking activities and working capital requirements.

As of Jan. 28, US$1 was equivalent to 4.19 Malaysian ringgit.