KUALA LUMPUR (July 16): Morgan Stanley & Co International plc has pared down the stake held on behalf of a client in apparel retailer Cheetah Holdings Bhd (KL:CHEETAH) to below the 5% threshold.

The multinational investment bank's UK-based unit, on behalf of Mitsubishi UFJ Financial Group (MUFG), sold 18.6 million shares or a 3.83% stake in Cheetah on July 14, according to a bourse filing on Thursday.  

MUFG is deemed interested in Cheetah shares held by Morgan Stanley Group due to its more than 20% stake in the investment bank. 

This reduced MUFG’s shareholding in the apparel company to 1.85% (9.02 million shares) from 5.68% (27.62 million shares), according to Cheetah's filing with Bursa Malaysia on Thursday.

The disposal price was not disclosed. At Cheetah's closing price of 12.5 sen on July 14, the stake is valued at RM2.32 million.

This is not the first time Morgan Stanley via the client has ceased to be a substantial shareholder of Cheetah. In early December last year, it disposed of 28.5 million shares, equivalent to its entire 5.86% stake in the company.

However, the investment bank rebuilt its position shortly after, acquiring a 7.72% stake (37.52 million shares) or through purchases on Dec 2 and Dec 16 last year. It subsequently pared down its holdings again, disposing of a 1.32% stake (6.44 million shares) between Dec 22, 2025 and April 16, 2026.

Cheetah returned to the black in the third quarter ended March 31, 2026, after reporting losses for three consecutive quarters. The group posted a net profit of RM3.66 million, compared with RM2.22 million a year earlier, while revenue fell to RM38.9 million from RM41.06 million.

Shares of Cheetah were last traded at 12.5 sen, giving the company a market capitalisation of RM58.44 million.