Malaysian sovereign wealth fund Khazanah Nasional Bhd. has sold 1.39 billion ringgit ($340 million) worth of shares in state-owned power firm Tenaga Nasional Bhd., according to people with knowledge of the matter.

The placement represents a significant divestment by the sovereign wealth fund in the country's largest electricity utility. Khazanah, which manages the government's commercial assets, has been gradually reducing its holdings in various state-linked companies as part of its portfolio rebalancing strategy.

Tenaga Nasional, the primary power generation and distribution company in Malaysia, has seen several stake sales by government-linked entities in recent years. The transaction was executed through an accelerated bookbuild offering to institutional investors.

Market observers note that such placements typically occur at a discount to prevailing market prices, though specific terms of this deal were not immediately disclosed. The sale reduces Khazanah's stake in the utility while providing liquidity for its investment activities.