The Employees Provident Fund (EPF), said on Monday it would sell down its stake in RHB Capital to 40 percent by the middle of 2011.

"We plan to sell down our stakes in RHB Capital to about 40 percent by the middle of next year," EPF CEO Azlan Zainol told

reporters.

EPF held a 56 percent stake in the bank as of March 31 according to data from Thomson Reuters.

Azlan added that the state fund also had no issue with Hong Leong Bank's planned acquisition of EON Capital when asked whether there were concerns.

EPF holds about 10 percent in both Hong Leong and EON Capital.

EON Capital delayed a shareholder vote on a buyout offer from Hong Leong Bank after Hong Kong-based private equity fund Primus Pacific Partners, its biggest single shareholder with a 20 percent stake, said it filed a lawsuit on Monday to block the $1.6 billion deal.

- Reuters