KUALA LUMPUR (July 1): Affin Bank Bhd has received the nod from the Securities Commission of Malaysia (SC) for the RM1.42 billion disposal of 63% stake in Affin Hwang Asset Management Bhd (Affin Hwang AM).

Affin Bank is disposing Affin Hwang AM to Starlight Asset Sdn Bhd, with shareholders’ approval secured at the virtual extraordinary meeting (EGM) held on May 25.

Starlight Asset is a unit of CVC Capital Partners. CVC will also be buying another 5.35% stake from Afffin Hwang AM’s senior management for RM120 million, thus raising its stake to 68.35% in the asset management entity.

The bank said in a filing that the SC has “approved the application for the proposed change in the controller” of Affin Hwang AM, as well as its 100%-owned Islamic investment management unit, AIIMAN Asset Management Sdn Bhd.

The approval, it said, is under condition “no adverse findings” against the proposed direct and indirect controllers.

The other condition is that the proposed divestment shall not adversely affect the soundness of both Affin Hwang AM and AIIMAN, or the interest of the existing clients of the Affin Hwang AM Group, it added.

The divestment by Affin Bank, first proposed in January, will result in a gain on disposal of RM1.063 billion for the bank, its president and group CEO Datuk Wan Razly Abdullah Wan Ali reportedly said.

Shares of Affin Bank settled two sen or 1.06% lower at RM1.86 on Friday (July 1), giving the bank a market capitalisation of RM3.95 billion.