A total 106 million shares changed hands at 5.50 ringgit today in off-market trades valued at about 583 million ringgit ($191 million), according to data from the Kuala Lumpur stock exchange, which didn’t name the buyers or seller. That’s at the bottom of its marketed range of 5.50 ringgit to 5.60 ringgit, according to a term sheet sent to fund managers. It’s also 1.8 percent below Malaysia Airports’ closing price yesterday.
Khazanah has progressively cut its stake in Subang-based airports operator to 40.4 percent from 67.7 percent in 2010 as part of the government’s plans to reduce its local business holdings. It’s also pared its holding in companies including Telekom Malaysia Bhd. (T) and power producer Tenaga Nasional Bhd. (TNB)
Khazanah exercised an upsize option to increase the number of shares available from 85 million, said the person, who declined to be identified as the information was private.
Bashir Ahmad, Malaysia Airports managing director, confirmed the placement in a text message to Bloomberg News, without providing details. A Khazanah spokesman declined to comment on the transaction by phone.
Credit Suisse Group AG and OSK Investment Bank Bhd. were joint book-runners, the person said. Permodalan Nasional Bhd., Employees Provident Fund and CIMB-Principal Asset Management Bhd. were among local buyers who acquired about 60 percent of the placed shares, said the person.
Malaysia Airports operates more than 20 local and international airports in Malaysia and is building a new budget terminal outside Kuala Lumpur. It also has interests in India, Turkey and the Maldives.
Khazanah’s placement plan was first reported by the Edge Financial Daily today.
To contact the reporter on this story: Barry Porter in Kuala Lumpur at firstname.lastname@example.org