This article first appeared in The Edge Financial Daily, on April 13, 2016.

KUALA LUMPUR: Alliance Financial Group Bhd’s (AFG) share price surged further amid news about emergence of new shareholders after Lutfiah Ismail, a close associate of former finance minister Tun Daim Zainuddin, sold her 51% equity interest in Langkah Bahagia Sdn Bhd, which has an effective 14.8% stake in the banking group.

AFG’s share price rose as high as 4.31% in yesterday’s morning session to an intraday high of RM4.31. The stock closed at RM4.29 — the highest level since July last year, up 11 sen or 2.63%, with 3.6 million shares changing hands.

The Edge Financial Daily reported yesterday that former Kuala Lumpur City Corp Bhd and Nomad Group Bhd board member Lutfiah sold her entire shareholding in Langkah Bahagia to three individuals, namely Ong Beng Seng, Ong Tiong Sin and corporate adviser Seow Lun Hoo.

Langkah Bahagia controls a 51% equity stake in Vertical Theme Sdn Bhd — the largest shareholder of AFG holding a 29.06% stake. Meanwhile, Singapore’s state-controlled sovereign wealth fund Temasek, through its unit Duxton Investments Pte Ltd, holds the remaining 49% in Vertical Theme.

The purchase would give the trio a 14.8% stake in AFG.

The changes in shareholding spark speculations on what could possibly be brewing in the banking group in the near future. Many are curious to know whether Temasek was being offered to buy the block of shares in Langkah Bahagia.

Tiong Sin may not ring a bell in Malaysia, but he is a well-known figure in Singapore’s investing fraternity.

Tiong Sin, who is better known as Richard Ong, is the chief executive officer and co-founder of RRJ Capital. His brother Charles Ong, also a co-founder of RRJ Capital, was once Temasek’s head of investment for over 10 years.

It is said that Temasek has invested nearly US$1 billion (RM3.89 billion) in RRJ Capital. RRJ Capital and Temasek are co-investors in several ventures in China.

With the close ties between Tiong Sin and Temasek, eyebrows are raised on the trio’s investment in AFG.

Langkah Bahagia is the largest shareholder of AFG, followed by the Employees Provident Fund, which recently upped its stake to 16.44% on April 6, Malaysia Focus Investment at 4.82% and Medimetro Sdn Bhd at 3.67%.