PETALING JAYA: Aabar Investments PJS has embarked on another round of equity sale in RHB Bank Bhd, less than a year after it disposed of a 3% stake in the country’s fifth-largest banking group by market value.
The indirect subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Co is seeking to sell 191 million shares in RHB Bank at between RM5.43 and RM5.54 per share via a book-building exercise, according to a term sheet.
The completion of the share sale exercise would see Aabar’s stake in RHB Bank drop to below the 10%-mark. This would also mean that Aabar would no longer be the second largest shareholder of the bank.
The shares offered by Aabar were equivalent to 4.8% in the banking group, valued at between RM1.037bil and RM1.058bil. Prior to the sale, Aabar owns a 14.75% stake in RHB Bank.
The price range of RM5.43 to RM5.54 per share obtained via the book-building exercise for Aabar’s 191 million shares, represents a 3% to 4.9% discount to RHB Bank’s last share price close.
Yesterday, shares in RHB Bank fell four sen to close at RM5.71. About 5.36 million shares changed hands.
Aabar cannot sell more shares until a 60-day lock-up period, post-placement, is over, as per the terms sheet.
In August last year, Aabar sold 120.3 million shares in RHB Bank, or about a 3% stake, at a price ranging between RM5.07 and RM5.18 each also via a book-building exercise.CIMB Investment Bank and JPMorgan, the joint bookrunners for the first tranche, have again been picked to arrange the deal.
Aabar is the second-largest shareholder in RHB Bank, followed by OSK Holdings Bhd with 10.13%.
The Employees Provident Fund is the largest shareholder with a 40.62% equity in the bank.
Aabar was formerly owned by the Abu Dhabi government investment vehicle, International Petroleum Investment Corp, and later taken over by Mubadala under a restructuring exercise in 2016.
In line with Mubadala’s broader review of its portfolio, the entity has decided to pare down its stake in RHB Bank, which it viewed as a non-core asset.