State-run pension fund said it aims to sell off more than 40 percent of the country's fourth largest bank RHB Capital early next year to meet a shareholding rule.

The Employees Provident Fund is the single largest shareholder in RHB Capital with an 82 percent stake. Under a central bank ruling, it needs to reduce its holding to 35 percent by June next year.

EPF chief executive officer Azlan Zainol said an announcement on a buyer for RHB Capital, which is listed on the stock exchange, was likely by the first quarter.

"There has been interest from the Middle East and interest from some big financial houses from Europe, we are looking at all these. We welcome strategic partners from anywhere," Azlan told reporters.

To retain control

He said the EPF would need more than one strategic partner to comply with the shareholding rule while at the same time retaining control as the single largest shareholder of RHB Capital.

Azlan said Kuwait Finance House, a Middle Eastern concern with operations in Malaysia, was not among the parties that had expressed interest in the bank.

In March, EPF beat two rivals, including Kuwait Finance House, to gain control of RHB Capital by acquiring its parent Rashid Hussain Bhd.

Azlan, who is also a director at RHB Capital, said the banking group was planning to double its profit and market capitalisation in three years.

"The bank is going places," he said.