KUALA LUMPUR (March 23): Ranhill Utilities Bhd's major shareholder and executive chairman, Tan Sri Hamdan Mohamad, has pared his equity interest in the utility group to 34.26%, after disposing of a 9.07% stake in an off-market transaction.

Lambang Optima Sdn Bhd, in which Hamdan has deemed interest, disposed of the 9.07% stake comprising 116.63 million shares on March 18, according to a bourse filing.

With this, Lambang Optima ceased to be a substantial shareholder of Ranhill, with its stake reduced to 2.87% or 37.4 million shares.

The ultimate purchaser of the 9.07% stake is not immediately known. Ranhill stated the registered holder as UOB Kay Hian Nominees (Asing) Sdn Bhd Exempt AN for UOB Kay Hian Pte Ltd.

Ranhill's other substantial shareholders include Cheval Infrastructure Fund LP, acting via its general partner TAEL Management Co (Cayman) Ltd, with a 18.77% stake, and the Johor state government with 9.02% via Permodalan Darul Ta'zim Sdn Bhd.

Bloomberg data showed that Lambang Optima sold the block of Ranhill shares at March 18's closing price of 51 sen per share, for a total sum of RM59.48 million.

As a result of Lambang Optima's stake sale, Hamdan, who is also Ranhill president and group chief executive officer, saw his shareholding in Ranhill fall from 43.19% to 34.26%, comprising a 10.2% direct stake and a 24.06% indirect stake.

Ranhill is involved in the water industry in Peninsular Malaysia, Thailand and China, with a water supply concession for Johor state. It is also the largest independent power producer in Sabah with a combined gas generation capacity of 380MW.

Since peaking in its financial year ended Dec 31, 2019 (FY19), Ranhill's earnings declined in FY20 and FY21. In FY21, its net profit fell 16.2% to RM30.58 million (lowest since FY16) from RM36.49 million a year earlier. This was despite revenue rising 3.56% to RM1.53 billion, from RM1.48 billion.