Khazanah Nasional says transfer of CIMB stake was due to exchangeable bond issuance

17 Jul 2019 / 15:45 H.

PETALING JAYA: Khazanah Nasional Bhd clarified that it did not dispose of shares in CIMB Group Holdings Bhd as reported.

The state-owned investment fund said in a statement that the shares were transferred pursuant to securities lending agreements that Khazanah had entered into with CGS-CIMB Securities Sdn Bhd, Credit Suisse Securities (Europe) Ltd and JP Morgan Securities PLC respectively, in relation to an exchangeable bond issued recently.

Khazanah stressed that the exchangeable bond will not have a dilutive effect on CIMB’s earnings per share.

It also noted that the issuance of exchangeable bonds is part of Khazanah’s regular financing activities. Since 2004, it has issued 10 exchangeable bonds.

Last Friday, Khazanah transferred a 3.45% equity interest in CIMB as a result of the exchangeable bond issuance.

At 3.35pm, CIMB shares were trading 3 sen or 0.6% lower at RM5.13 with 5.22 million shares changing hands.

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