KUALA LUMPUR, Nov 16 — Shares of Affin Holdings jumped today on speculation that it could be a merger target, dealers said.
By 11.28am, Affin surged 9.8 per cent to RM2.57 a share, after rising by as much as 13.7 per cent earlier in the morning.
Dealers said speculation that Affin will be merged with the Hong Leong group was triggered by reports in Hong Kong last week that a battle for control could be brewing for Hong Kong’s No.5 bank, Bank of East Asia (BEA).
“As BEA has a 20.5 per cent stake in Affin, this news sparked talk of a potential merger of Quek’s (Leng Chan) Hong Leong Bank and Affin,” the research unit of CIMB Investment Bank said in a note.
Quek Leng Chan is the owner of Hong Kong-listed Guoco Group and owns a Malaysian bank through his Hong Leong group. “It is a story that is linked to (Bank of) East Asia, everyone is scrambling to buy,” said a dealer at a Malaysian investment bank.
Affin and Hong Leong could not be immediately reached for comment. — Reuters
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