World’s biggest sovereign wealth fund ceases to be substantial shareholder in Cahya Mata Sarawak

World’s biggest sovereign wealth fund ceases to be substantial shareholder in Cahya Mata Sarawak

KUALA LUMPUR (Jan 12): Cahya Mata Sarawak Bhd (CMS) said that Norges Bank, which manages Norway’s Government Pension Fund Global, is no longer a substantial shareholder after holding less than a 5% stake in the Sarawak-based cement manufacturer.

In a bourse filing on Thursday (Jan 11), CMS said it received an email notification the same day saying Norges Bank’s total shareholding stood at 4.989% as at Dec 6, 2023. However, the filing did not disclose the total number of shares disposed of.

According to stock exchange disclosures dating back to Sept 15, when Norges Bank acquired 54.05 million shares, representing a 5.03% stake and becoming a substantial shareholder in CMS, a 4.89% shareholding would be equivalent to 53.60 million shares.

This implies that Norges Bank’s total share disposal amounts to 451,234 shares. Based on CMS’ closing price of RM1.04, a back-of-the-envelope calculation suggests that Norges Bank may have disposed of the stake for about RM469,283.

Recently, CMS’ 79.07%-owned subsidiary, Cahya Mata Phosphates Industries Sdn Bhd, faced a RM342.25 million counterclaim from state utility firm Syarikat Sesco Bhd in their arbitration proceedings over a purchase power agreement (PPA) dispute.

However, CMS said that Sesco’s counterclaim would not have a material financial impact on its financials and operations.

CMS’ net profit in the third quarter ended Sept 30, 2023 fell by 94% to RM9.98 million from RM15.43 million a year ago, mainly due to one-time gains from recognising negative goodwill in the previous corresponding quarter. Quarterly revenue increased by 8% to RM301.9 million from RM278.39 million, primarily due to contributions from its oiltools division.

Shares in CMS traded four sen or 3.57% lower to RM1.08 at noontime on Friday, translating into a market capitalisation of RM1.16 billion.

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