Khazanah disposes off TM shares for RM 581 million

Posted on July 21, 2010

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The government’s investment arm Khazanah Nasional Bhd has placed out 5 per cent of Telekom Malaysia Bhd (TM)’s stock in a deal valued at RM581.3 million.

The deal, valued at RM581.3 million, is believed to be the second largest share placement exercise in Malaysia so far this year

The deal, executed yesterday, is believed to be the second largest share placement exercise in Malaysia so far this year.
Some 178.9 million of TM shares were placed out to local and foreign institutional investors at a fixed price of RM3.25 each, sources said.

The price represented a 2.7 per cent discount to TM’s closing price of RM3.34 in the stock market yesterday.
“There was overwhelming demand from both domestic and foreign institutional investors. The transaction was covered very quickly,” a source told Business Times.

TM’s share price has gained about 9.2 per cent so far this year, peaking at RM3.54 in mid-May.
With the sale, Khazanah’s 42 per cent stake in TM has now been reduced to 37 per cent.

Khazanah has been been making an effort to sell down its holdings in government-linked companies in a bid to boost their free float and draw foreign funds back into the stock market.

Read more: http://www.btimes.com.my/Current_News/BTIMES/articles/telnom/Article/index_html

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