Khazanah disposes RM8b worth of shares, assets in 7 months

 

Khazanah Nasional Bhd has divested a total RM8.03 billion worth of shares in public companies and assets in seven months, from March to September, said Finance Minister Tengku Zafrul Abdul Aziz.

"The disposal of assets covers various sectors, including banking, technology, health, energy, and telecommunication located in the country and abroad," he said in a parliamentary reply.

The government's strategic investment arm disposed of its equities in Ping An Healthcare and Technologies, Tenaga Nasional Berhad, Telekom Malaysia Berhad, Alibaba Group Holding, and Prince Court Medical Centre.

"The divestment includes private sale transactions at the secondary market as well as placement and corporate exercises, such as stock exchange and capital reduction," he said.

He stressed that the divestment was something normal as the company received no allocation from the government, thus the proceeds of the divestment will be used on new investments and repaying loans that have reached maturity.

"As a sovereign wealth fund that holds an interest in various sectors and industries, Khazanah will consider the best opportunity to dispose of the assets once the investment objectives and targeted returns are met," he said.

Zafrul was responding to Pokok Sena MP Mahfuz Omar of Amanah who asked for a list of assets that were disposed from March to October.

In 2018, the Dewan Rakyat was told that Khazanah had strayed from its original objectives and made some bad investments, including a lingerie retail platform that failed.

Critics also pointed to GLCs having a stranglehold on the economy, often pushing out smaller private players in the process.

Over the last 10 years, Khazanah has sold more than 100 assets worth about RM65 billion.

In 2019, Khazanah divested about RM15.9 billion, mostly from the partial reduction of its stake in IHH Healthcare Bhd (RM8 billion), Alibaba Holdings Ltd (RM2 billion) and Tenaga Nasional Bhd (RM1 billion) and full divestments of its stakes in BDO Unibank (RM1.5 billion) and Farfetch.com Ltd (estimated at RM771 million).

Last year, Khazanah managing director Shahril Ridza Ridzuan said the company's ongoing transactions were in the ordinary course of its business, which involves realising investments and then redeploying capital for new investments.

In March 2019, then-premier Dr Mahathir Mohamad said that Khazanah owed lawmakers and the people an explanation about its first pre-tax loss in 13 years in 2018.

He also called for the sovereign wealth fund to produce a comprehensive plan of action to revive its position so as not to continue to suffer losses. - Mkini