Khazanah said to mull selling RM3.6b of listed firm stakes

[KUALA LUMPUR] Malaysian sovereign fund Khazanah Nasional Bhd is considering paring its stakes in three listed companies, in deals that could raise as much as 3.6 billion ringgit (S$1.21 billion), according to people familiar with the matter.

The state-owned investor asked banks to pitch for a role arranging the sale of about 2 per cent each in Tenaga Nasional Bhd, IHH Healthcare Bhd and Axiata Group Bhd, according to the people, who asked not to be identified as the information is private.

Khazanah, which is the largest shareholder in the three Malaysian companies, may decide to sell stock in one or all of the firms, one of the people said.

Khazanah holds a 29.7 per cent stake in Tenaga, which is Malaysia's biggest listed power producer with a market value of 79.7 billion ringgit, according to data compiled by Bloomberg.

The Kuala Lumpur-based fund owns 43 per cent of IHH, Asia's largest hospital operator, and 38.2 per cent of Axiata, the nation's biggest wireless operator by revenue, the data show.

The sovereign fund has been trimming its stakes in listed Malaysian companies as part of a government directive to boost liquidity on the local bourse. It sold US$448 million of Tenaga shares in January last year and raised US$144 million paring its stake in container terminal operator Westports Holdings Bhd in 2014, data compiled by Bloomberg show.

Khazanah had a net asset value of 109 billion ringgit at the end of December, up from 110.7 billion ringgit at the end of 2014, according to statements from the fund. A representative for Khazanah declined to comment.

BLOOMBERG