The government's investment arm Khazanah Nasional today said it may sell its stake in RHB Bank to the Employee's Provident Fund which won control of the parent Rashid Hussain (RHB) banking group.

Khazanah managing director, Azman Mohktar, said there was no strategic reason for retaining Khazanah's 30 percent stake in RHB Bank and that it would sell it to the state-run EPF - but at the right price.

"We have noted EPF's offer. We are evaluating it seriously. The primary consideration will be price," Azman said.

"We will not be holding it back for strategic reasons," he told reporters on the sidelines of an investment conference here.

The EPF currently has 30.9 percent stake in RHB Bank, which is the fourth largest bank in Malaysia with over 200 offices around the nation and the region.

Early this month, the EPF beat two rivals, including a Middle Eastern consortium, to buy a 32.8 percent stake in debt-ridden RHB after increasing its offer to RM2.25 billion from RM2.20 billion.

The state pension fund then announced a restructuring of the group, comprising RHB and its unit RHB Capital, which in turn owns RHB Bank.