Pos stake: Khazanah has winner in mind

The winner will be chosen for its ability to unlock value at Pos Malaysia and pay a good premium for the stake, says Khazanah's managing director


Kuala Lumpur: State investment firm Khazanah Nasional Bhd already has a winner in mind for its 32.2 per cent stake sale in national postal firm Pos Malaysia Bhd.

Khazanah had approached some 50 companies in its quest to find a suitable buyer and this number has since been whittled down under a bidding process, managing director Tan Sri Azman Mokhtar said.

He declined to say how many parties had been shortlisted, only that it would make its recommendations at a Khazanah board meeting later this month.

"We are already ready to make a decision but it has to be decided by the Khazanah board. We have a winner in mind," he told reporters yesterday on the sidelines of the final day of the Invest Malaysia conference.

On when the winning bid might be announced, Azman said, "We're almost there. After (the board meeting), the road should hopefully be clear".

The winner will be chosen for its ability to unlock value at Pos Malaysia and pay a good premium for the stake, he said.

News reports have speculated that shortlisted bidders include conglomerate DRB-HICOM Bhd, which is seen as the frontrunner, as well as Nationwide Express Courier Services Bhd.

DRB-HICOM's shares rose by 9 sen to RM2.33 yesterday after shedding some 9 per cent earlier this week.

Azman said the new Postal Bill will likely be tabled in Parliament fairly soon. Industry players have all been consulted and so the Bill - that touches on key issues like the government's golden share in Pos Malaysia and how the firm's land can be used - shouldn't come as a surprise when it is implemented, he said.

Khazanah first announced plans to divest the stake at last year's Invest Malaysia conference, when Prime Minister Datuk Seri Najib Razak urged state-owned investment firms to hasten their divestment of non-core assets.

Khazanah did seven divestment transactions last year with total proceeds of RM6.2 billion.

"This year, we're expecting to do roughly the same as last year ... between RM6 billion and RM7 billion. We are on track with that," Azman said, adding that this estimate did not include the divestment of PLUS Expressways Bhd.

Just last week, Khazanah announced plans to sell a 30 per cent stake in its healthcare unit, Integrated Healthcare Holdings Sdn Bhd, to Japan's Mitsui & Co for RM3.3 billion. Of that sum, Khazanah stands to get RM1.3 billion.

Khazanah also plans to do more acquisitions this year and is "constantly on the lookout" for attractive assets, Azman said. - By Adeline Paul Raj of btimes.com.my

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