KUALA LUMPUR Aug 16 Malaysia's second-smallest
bank Affin Holdings Bhd has obtained central bank
approval to start negotiations on buying a stake in DRB-Hicom
Bhd's 70 percent-owned Bank Muamalat Malaysia Bhd
, according to stock exchange filings on Thursday.
The potential deal follows the completion of DRB-Hicom's
purchase of a 70 percent stake in Bank Muamalat on Oct. 22,
2008, after which it was required by the central bank to trim
its stake to 40 percent.
Affin said the negotiations are to be completed on or before
the end of this year.
The announcement also comes a day after DRB-Hicom said it
received expression of interest from certain parties to buy a
stake in its insurance businesses.
(Reporting by Yantoultra Ngui; Editing by David Holmes)