MUFG sells 412m CIMB shares, reportedly for RM2.56b

CIMB Group Holdings Bhd group chief executive Tengku Datuk Seri Zafrul Aziz: "We continue to face difficult markets".

KUALA LUMPUR: CIMB Group Holdings Bhd confirmed that Mitsubishi UFJ Financial Group’s (MUFG) banking entity sold its entire 412 million CIMB shares 

CIMB said on Wednesday that MUFG's unit, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) had sold the 4.6% stake via an overnight block trade.

“The divestment was part of MUFG's strategic global master plan which included a review of its portfolio of existing investment in affiliates,” it said. 

Bloomberg reported BTMU raised RM2.56bil (US$610mil) from the sale of the stake. It priced its sale of CIMB shares at RM6.20 apiece, below the midpoint of a marketed range, according to terms for the deal obtained by Bloomberg. 

“It had offered 412.5 million shares at RM6.15 to RM6.30 each. The final sale price represents a 4% discount to CIMB’s Tuesday close,” it said.

The share sale is the largest block trade in Malaysia in local-currency terms in more than a decade, according to data compiled by Bloomberg. 

Group chief executive of CIMB Group Tengku Datuk Seri Zafrul Tengku Abdul Aziz said: “We have had a mutually rewarding relationship over the last 40 years and whilst MUFG's capital priorities have necessitated this move, I am confident our relationship will remain strong. 

“We will continue to be trusted business partners and look forward to further develop our collaboration in complementary areas." 

MUFG’s CEO for Asia & Oceania, Takayoshi Futae, said: “As a global financial institution rooted in Asia, we have long been a committed partner to Malaysia’s growth. 

“Over the years, our alliance with CIMB has deepened and we found ourselves collaborating broadly on areas ranging from Islamic finance and trade finance to infrastructure projects,” he said.

 This foundation of mutual respect and partnership will not change, and we will continue to explore further ways to grow in Malaysia with CIMB’s support, as well as to help them expand using MUFG’s global resources and network.”

MUFG’s capital investment in CIMB was made in various stages from 1974 onwards. 

They said in a joint statement that notwithstanding the divestment, both MUFG and CIMB would maintain their current collaboration founded on a mutually beneficial 40-year partnership.