News: ANZ UPDATE 1-Australia's ANZ selling 9% stake in Malaysia's AmBank, term sheet shows

(Adds details of the share sale in paragraph 2 to 3, background in paragraph 4 to 6)

Australia's fourth-biggest bank ANZ Group (ANZ) is selling around 298 million shares or 9% stake worth up to $242 million in Malaysian lender AMMB Holdings AMMB.KL , according to a term sheet seen by Reuters on Tuesday.

The shares are being offered at between 3.80 ringgit and 3.85 ringgit per AmBank share, according to the sheet, which is equivalent to a discount of 8.3% to 9.5% to the closing price of AMMB's shares of 4.20 ringgit on Tuesday.

The sale will reduce ANZ's stake in the Malaysian bank to 12.7% from 21.7%, according to the sheet.

The sale comes three years after ANZ announced it would

write down

the value of its investment in AMMB after the Malaysian bank settled a claim linked to the massive financial scandal at state fund 1MDB.

AMMB announced in early 2021 that it would

pay

the Malaysian government 2.83 billion ringgit ($597.93 million) to settle claims in relation to its role in the scandal in which $4.5 billion was allegedly stolen from 1Malaysia Development Berhad (1MDB), a state fund set up by former prime minister Najib Razak.

AMMB is the sixth-largest banking group by assets in Malaysia, according to its website.

ANZ and AMMB did not immediately respond after working hours on Tuesday.

The joint placement agents for the sale are BofA Securities and CIMB, the sheet showed.

($1 = 4.7330 ringgit)