MUFG to sell remaining CIMB stake for up to $620 mln-IFR

HONG KONG: Mitsubishi UFJ Financial Group Inc (MUFG) has launched the sale of shares worth up to US$620 million in CIMB Group Holdings Bhd, its remaining stake in Malaysia's second-biggest bank, IFR said on Tuesday, citing a term sheet.

MUFG, Japan's biggest bank by assets, is offering 412.5 million shares in CIMB owned by The Bank of Tokyo-Mitsubishi UFJ Ltd in a range of RM6.15- RM6.30 each, IFR, a Thomson Reuters publication, said.

The low end of the price band is equivalent to a discount of 4.8% to Tuesday's close of RM6.46.

An MUFG spokeswoman in Tokyo said the bank was considering the sale of its CIMB shares, but the number of shares and price had not been determined and declined further comment. CIMB declined to comment.

MUFG, which has US$2.8 trillion in assets, has been reviewing its investment portfolio, especially the small stakes held in overseas banks which it had bought in the past few years as a means to building alliances.

CIMB, Credit Suisse and Morgan Stanley have been appointed as bookrunners on the sale of the CIMB shares, IFR said.