GIC to let go of $120m stake in Malaysia’s Sunway

It’s giving everything away.

Singapore's sovereign wealth fund, GIC Pte Ltd, is selling a stake worth more than 400 million ringgit ($120 million) in Malaysia's property-to-construction conglomerate Sunway Bhd, according to a term sheet seen by Reuters on Tuesday.

The shares are being priced in a range between 3.20 and 3.30 ringgit each, the term sheet showed, representing a discount of 1.5 percent to 4.5 percent to Tuesday's closing price of 3.35 ringgit.

Sunway, controlled by Malaysian tycoon Jeffrey Cheah, in September announced plans to re-list its construction business by the second quarter of 2015, a move analysts said would further unclock value and reward Sunway shareholders in the form of cash dividends.

GIC would cease to be a substantial shareholder in Sunway. GIC holds a stake of 8.72 percent in the company, according to Thomson Reuters data, and it is selling a stake of 7.26 percent with an upsize option to sell the rest, according to the sheet.