Khazanah pares down stake in TNB

Khazanah pares down stake in TNB
Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com
Wednesday, 05 June 2013 09:48


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KUALA LUMPUR: TENAGA NASIONAL BHD []’s (TNB) largest shareholder Khazanah Nasional Bhd has trimmed its stake in the utility group further via share placements to both foreign and institutional funds.

Khazanah yesterday placed out 50 million shares (0.9% equity interest) in TNB for RM8.24 per share, amounting to RM412 million.

Khazanah’s stake in TNB was reduced to 32.6% from 33.5% previously.

CIMB Group Holdings Bhd and Deutsche Bank were joint placement agents for the block of shares.

This is the second share placement by Khazanah to pare down its interest in TNB, which has been stuck between rising fuel costs and a controlled electricity tariff.

Last December, the state-owned investment arm sold 60 million shares or 1.1% in TNB for RM406.8 million. The block of shares was transacted at RM6.78 per share, nearly 18% less than the latest placement price.

In a joint statement yesterday, CIMB Group and Deutsche Bank said the price for the latest placement represents a 1.6% discount to the closing price on June 3, which was RM8.37.

TNB’s share price has climbed steadily from slightly below RM7 early this year to a near six-year high of RM8.45 last month.


“In the last 12 months, TNB’s share price has gained approximately 30.4%, outperforming the benchmark FBM KLCI which is up 13.6%,” said the statement.

There was strong demand from both domestic and foreign institutional investors for the placement, it said.

Analysts said the renewed buying interest in the utility stock was mainly because of improved earnings prospects amid a drop in coal prices and compensation by the government and Petroliam Nasional Bhd for the shortfall in supply of natural gas.
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This article first appeared in The Edge Financial Daily, on June 5, 2013.