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Aabar Investments to sell its stake in RHB Bank

The Abu-Dhabi-based company first forayed into RHB Bank as a substantial shareholder in 2011

Abu Dhabi-based Aabar Investments has decided to sell its 4.23 percent stake in Malaysia’s RHB bank, media reports said. The company has put the stake for sale close to RM1 billion.

It is reported that Aabar Investments will sell its entire stake of 169.52 million shares. The price range of the shares are between RM5.45 to RM5.62 per share. Furthermore, the selling price was floated at a 6.8 percent discount, while the share sale will take place through accelerated book-building exercise and will be considered as a secondary placement.

In 2011, Aabar Investments acquired a 24.9 percent stake in RHB Bank from ADCB. It is reported that Aabar Investments acquired the stake at RM 10.80 per share. However, the stocks got diluted to 17.7 percent four years ago due to not taking up the rights shares issued by RHB Bank.

Aabar Investments sold 120.3 million shares at RM5.12 per share in 2018. The estimated cost of the shares was RM 615.9 million. The company’s stake in RHB Bank came down to 14.5 percent after the August disposal. It disposed another 3 percent share through a book-building.

Aabar Investments share in the bank came down to 4.23 percent last year when it sold another block of share. Currently, the largest shareholder in RHB Bank is the Employees Provident Fund with a stake of 42.86 percent.

The pandemic has walloped banks across the globe. However only a few banks are showing signs of rebound.

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