Singapore's state investor Temasek Holdings plans to divest a 1.85% stake in  $SIA (C6L.SG)$(OTC:SINGY) for around S$400 million ($296 million).

The shares are priced between S$7.202 and S$7.283 per share, Reuters reported, noting that the offer price represents a 3% and 4% discount to the last close of S$7.50 on Wednesday.

"As an active investor, we regularly reshape and rebalance our portfolio to deliver sustainable returns over the long term," Reuters reported citing an email response from Juliet Teo, Temasek's Head of Transportation & Logistics.

Temasek will remain a major shareholder in Singapore Airlines with a 53.5% stake.

"We are committed to the long-term success of SIA and continue to maintain a majority stake in it," Teo added.

Price Action: SINGY shares are trading lower by 3.39% to $10.82 on the last check Wednesday.