The Employees Provident Fund, Malaysia’s biggest pension fund, sold a 4.5 percent stake in RHB Capital Bhd. for 746 million ringgit ($237 million), two people with direct knowledge of the matter said.
The fund, RHB Capital’s largest shareholder, sold 96.9 million shares at 7.70 ringgit each, said the people who declined to be identified as the information is private.
The move comes after Prime Minister Najib Razak called on state-linked institutions in March to cut their stakes in public companies to boost stock market liquidity and attract foreign investors. Khazanah Nasional Bhd., a government investment agency, this year sold shares in companies including Malaysia Airports Holdings Bhd., CIMB Group Holdings Bhd. and Telekom Malaysia Bhd.
EPF plans to gradually pare its 54 percent stake in RHB Capital, Tajuddin Atan, RHB Capital’s managing director, said in a Nov. 8 interview.
Shares of RHB fell 1.3 percent to 7.80 ringgit at 10:08 a.m. in Kuala Lumpur trading. It is the second-best performing stock on the FTSE Bursa Malaysia KLCI Index this year, having risen 47 percent.
Nik Affendi Jaafar, an EPF spokesman, didn’t answer calls to his mobile phone and wasn’t immediately available when called at his office.
To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at firstname.lastname@example.org.