KUALA LUMPUR (Nov 20): Affin Bank Bhd (KL:AFFIN) has entered into a conditional share purchase agreement to acquire 100% of Pheim Asset Management Sdn Bhd for RM50 million in cash, in its bid to become a universal bank, it announced in a filing with Bursa Malaysia. 

Established in 1993, Pheim has subsidiaries in Islamic asset management and unit trust management. 

As of June 30, 2025, the group was managing RM875.74 million in assets. For the financial year ended Dec 31, 2024, Pheim posted RM1.58 million in profit after tax, with net assets of RM25.61 million and RM21.60 million in cash and fixed deposits.

Affin, which counts the Sarawak government as its largest shareholder, said the deal will diversify its income by acting as a unit trust management company for other institutions, earning recurring fees and boosting brand visibility.

It will also enable it to generate steady income from management fees and investment returns, supporting Affin’s goal of increasing non-interest income.

The acquisition is subject to approvals from Bank Negara Malaysia and the Securities Commission Malaysia, including consent for changes in control for Pheim AM, Pheim Islamic AM, and Pheim Unit Trust within six months of signing the agreement.

The acquisition would allow Affin to develop new and innovative investment funds to meet diverse client needs, including collaborations with foreign fund managers.

It is also said to enhance Affin’s competitive position by:

Last November, the Sarawak state became Affin’s largest shareholder after buying about 26% stake for RM1.78 billion from the Armed Forces Fund Board (LTAT) and Boustead Holdings, adding to its existing 4.95% stake acquired in April 2023.

At the time of writing on Thursday, shares of Affin were three sen or 1.31% higher at RM2.32, giving it a market capitalisation of RM5.88 billion. Year to date, the stock is down 15.85%.