Khazanah Nasional, the investment arm of the Malaysian government, plans to sell its entire stake in mainland department store operator Parkson Retail Group through a share placement and convertible bond sale, sources familiar with the situation said.
Khazanah is offering eight million Parkson shares at HK$70 to HK$72.30 each, an up to 8 per cent discount to the stock's close of HK$76.10 yesterday, according to a sale document obtained by fund managers.
It is also selling US$543 million in three-year bonds with a 2.89 per cent interest rate that can be swapped for Parkson shares.
The conversion price would range between a 32 and 37 per cent premium over the final pricing of the share placement, another source said.
The size of the bond sale could increase to US$576 million if demand warrants.
Deutsche Bank, UBS and Malaysian investment bank CIMB are joint bookrunners for the share placement.
'Orders for both tranches were well covered three hours after they were launched for Asian investors although the book will stay open for the European market,' a source said.
