PETALING JAYA: Khazanah Nasional Bhd has placed out 53.8 million shares in Telekom Malaysia Bhd (TM) at RM5.80 each, raising gross proceeds of RM312mil.
In a statement yesterday, the sovereign wealth fund said the placement price represented a 3% discount to TM’s closing market price of RM5.98 on April 14,2021.
“The share placement exercise is part of Khazanah’s ongoing efforts to rebalance its portfolio and recycle its investments from existing assets into new assets, including those that are strategic to the country’s future.
“In this regard, proceeds from the placement will be utilised for new investments, including investments in new strategic sectors that can help to spur Malaysia’s economic growth and create new high-skilled jobs.”
With the strong share price recovery and demand for TM shares, driven by the digital transformation initiatives under the government’s Malaysia Digital Economy Blueprint, Khazanah said the placement will provide an opportunity to partially monetise its investment in TM.
Khazanah added that this would further increase the free float and attractiveness of TM shares.
“Following the placement, Khazanah’s shareholding in TM will stand at 20.1%, ” it said.
Khazanah said the shares were placed out to a pool of domestic long-only institutional investors, as well as multi-strategy institutional investors, with the bulk of investors being domestic long-only funds.
Credit Suisse and CIMB were joint book runners for the share placement exercise.