KUALA LUMPUR, July 17 — Khazanah Nasional Bhd has clarified that it has not disposed of its shares in CIMB Group Holdings Bhd as reported.

The sovereign wealth fund in a statement said the shares were transferred pursuant to securities lending agreements that it had entered into with CGS-CIMB Securities Sdn Bhd, Credit Suisse Securities (Europe) Limited and JP Morgan Securities PLC respectively, in relation to an exchangeable bond issued recently.

"The exchangeable bond will not have a dilutive effect on CIMB’s earnings per share,” Khazanah said, adding, the issuance of exchangeable bonds is part of its regular financing activities.

Khazanah also said it had issued 10 exchangeable bonds since 2004.

It was reported yesterday to have sold 3.45 per cent of its stake in Malaysia's second largest bank. — Bernama