Investor Relations


The Affin Bank Group is a financial services conglomerate. The Group's activities focus on commercial, Islamic and investment banking services, money broking and underwriting of life and general insurance business.

Recurrent Related Party Transaction Of A Revenue Or Trading Nature

Type

Announcement
Subject AFFIN HOLDINGS BERHAD ("AHB" OR "COMPANY")

RECURRENT RELATED PARTY TRANSACTION OF A REVENUE OR TRADING NATURE

Contents :

1. Introduction
  •  

      Pursuant to Paragraphs 10.08, 10.09 and Practice Note No. 12 / 2001 of the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities"), the Board of Directors of AHB (“Board”) wishes to inform that the Company and its subsidiaries (“AHB Group” or the “Group”) have entered into recurrent related party transactions of a revenue or trading in nature, which are necessary for their day-to-day operations with related parties ("Recurrent Related Party Transactions"), as detailed below, which by way of aggregation have exceeded the prescribed limit of RM1.0 million in respect of the period from 1 January 2006 to 31 July 2006, both dates inclusive.


2. Details of the Recurrent Related Party Transactions
  •  

      The Recurrent Related Party Transactions which have been entered into between the companies within the AHB Group and the related parties in the normal course of the AHB Group's businesses, are set out in Table 1 below (as per attached).


3. Rationale
  •  

      The Recurrent Related Party Transactions are necessary for the day-to-day operations of the AHB Group, undertaken at arm's length, normal commercial terms, on terms not more favourable to the related party than those generally made available to the public and are not detrimental to the minority shareholders.


4. Financial effects
  •  

      The Recurrent Related Party Transactions will not have any effect on the issued and paid-up share capital, the net assets (“NA”) per share and earnings per share of the Company.


5. Interest of Directors, major shareholders and persons connected with them
  •  

      None of the other Directors and major shareholders of AHB and / or parties or person connected to them, have any interest, direct or indirect in any of the above Recurrent Related Party Transactions which may be regarded as a related party interest, save as disclosed above.


6. Approval required
  •  

      The value of the Recurrent Related Party Transactions for the financial year ending 31 December 2006 is estimated not to exceed 5% of the Group's latest audited NA as at 31 December 2005 of RM160.3 million, therefore the above Recurrent Related Party Transactions are not subject to the approval of the shareholders of AHB or any authorities.


7. Statement by the Board
  •  

      The Board is of the opinion that the above Recurrent Related Party Transactions are fair and reasonable to the Company and are not to the detriment of the Company and its shareholders and are in the best interest of the AHB Group.

This announcement is dated 18 August 2006.

Attachments

Table 1.pdf
76 KB

 


Announcement Info

Company Name AFFIN HOLDINGS BERHAD  
Stock Name AFFIN    
Date Announced 18 Aug 2006  
Category General Announcement
Reference No CC-060818-55424