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Norges Bank becomes substantial shareholder in Cahya Mata Sarawak

EditorAmbhini Aishwarya
Published 15/09/2023, 15:10
© Reuters.
CMS
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Norway's central bank, Norges Bank, has acquired a significant stake in the Sarawak-based cement manufacturer, Cahya Mata Sarawak Bhd (CMS), becoming the company's fifth-largest shareholder. The bank, which manages Norway's Government Pension Fund Global, now holds 50.05 million shares or a 5.03% stake in CMS, according to the company's filings with Bursa Malaysia on Thursday, September 14.

While the exact purchase price was not disclosed, estimates based on CMS's closing price of RM1.05 on Thursday, September 8 suggest that Norges Bank could have acquired the stake for about RM56.75 million ($13.4 million). As of Friday, CMS shares closed one sen or 0.94% higher to RM1.07, valuing the group at RM1.15 billion ($272 million).

Norges Bank currently stands as the largest single owner in the world's stock markets with investments valued at 15.3 billion kroner ($1.43 billion) as of June 2023. Its portfolio spans equities, fixed income, unlisted real estate and renewable energy infrastructure across most markets and currencies worldwide.

CMS reported a net profit of RM26.35 million ($6.2 million) for Q2 ended June 30, 2023, marking a decline of 33.42% from RM39.57 million ($9.3 million) a year earlier due to a lower share of profit from associates and increased loss before tax by its phosphate division. However, revenue saw an increase of 38.52% to RM290.52 million ($68.7 million), driven by its oiltools division.

Norges Bank joins other substantial shareholders of CMS including Sarawak Economic Development Corp, Lembaga Tabung Haji, the family of Sarawak Yang di-Pertua Negeri and former chief minister Tun Abdul Taib Mahmud's late wife, Puan Sri Laila Taib, and Majaharta Sdn Bhd. Notably, Abdul Taib's sons serve on the CMS board with Datuk Seri Mahmud Abu Bekir Taib as deputy group chairman and non-executive director, and Datuk Seri Sulaiman Abdul Rahman Abdul Taib as managing director.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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