By Ram Anand and Joy Lee

(Bloomberg) – Malaysia’s Sarawak state has emerged as the largest shareholder in Affin Bank after finalising a long-delayed deal to acquire additional shares in the lender.

State-owned SG Assetfin signed a share purchase agreement on Friday to buy a bigger stake in the bank from the Armed Forces Pension Fund (LTAT) and its unit Boustead. The transaction brings the state’s ownership in Affin to 31% from 4.81% previously.

“Our decision to invest in Affin is driven by a strategic move to create a financial platform and synergy with a sound and competent bank which is essential for Sarawak towards elevating its huge economic potentials,” Sarawak premier Abang Johari Tun Openg said at the event in Sarawak.

The deal underscores the Borneo state’s push for bigger ownership of strategic assets as it seeks for greater autonomy over its resources and economy. Sarawak is also planning an acquisition of Malaysia Airlines’ subsidiary MASwings and has taken over Bintulu port.

Affin is among the smaller banks in Malaysia by market value, Bloomberg-compiled data show. Its shares have gained more than 41% in 2024 amid media reports of the state’s interest in the bank early in the year. The stock fell 4.5% on Friday.