KUALA LUMPUR (July 17): Khazanah Nasional Bhd clarifies in a statement today it did not sell a 3.45% stake in CIMB Group Holdings Bhd, but that the shares were transferred in relation to an exchangeable bond issued recently.
Its statement followed CIMB amending its announcement to Bursa Malaysia dated July 16, which originally stated that Khazanah had disposed of the 335.7 million shares representing a 3.45% stake in the banking group last Friday, to say that the shares had been transferred pursuant to the Securities Lending Agreement.
"The shares were transferred pursuant to securities lending agreements that Khazanah had entered into with CGS-CIMB Securities Sdn Bhd, Credit Suisse Securities (Europe) Ltd and J.P. Morgan Securities PLC respectively, in relation to an exchangeable bond issued recently," read the statement.
However, Khazanah did not reveal the detail of the exchangeable bond issued, including the sum raised and conversion ratio.
The fund added that the issuance of exchangeable bonds is part of Khazanah's regular financing activities, and it has issued 10 exchangeable bonds since 2004.
"The exchangeable bond will not have a dilutive effect on CIMB's earnings per share," added Khazanah, who is CIMB's largest shareholder holding a 23.54% direct stake.
The original announcement to Bursa stated that the block of shares was transacted as a disposal. The filing has caused confusion in the market that Khazanah has trimmed its shareholding in CIMB, given that the government-linked entity has made known that it is on an asset divestment trail, and the banking group is one of the investments that it intend to unlock value.
Shares in CIMB settled two sen lower at noon break today, after 2.24 million shares were done. At its current price of RM5.14, the banking group is valued at RM50 billion.