We wish to announce that Bank Negara Malaysia ("BNM") had, vide its letter dated 25 March 2016, stated that it has no objection in principle for AFFIN Holdings Berhad ("AFFIN") to commence negotiations with Felda Marketing Services Sdn Bhd, AXA Asia and subsequently with the minority shareholders to acquire additional shares in AAGI in relation to the Proposal, subject to all parties concluding negotiations within 6 months from the date of the said letter.

Currently, AFFIN holds approximately 34.51% equity interest in AAGI.  AAGI is principally engaged in the underwriting of all classes of general insurance business.

Further, the said consent is not to be construed as approval for the Proposal. Upon concluding negotiations, AFFIN would be required to obtain the prior approval of BNM pursuant to the Financial Services Act 2013, before entering into any agreement to effect the Proposal.

We will make further announcements as and when there are material developments pertaining to the Proposal.

This announcement is dated 25 March 2016.