What investors are now eager to find out is how much is DRB-HICOM buying the stakes for and at what price or terms would the general offer be, says a research head
Kuala Lumpur: Shares of Proton Holdings Bhd rose by more than 6 per cent to RM4.23 yesterday after its adviser Tun Dr Mahathir Mohamed confirmed that Khazanah Nasional Bhd will sell its 42.7 per cent stake in the national carmaker to DRB-HICOM Bhd.
Speculation of DRB-HICOM acquiring stakes in Proton, which has been going for years, resurfaced recently.
Over the past two weeks, Proton shares were actively traded, with its mother shares rising more than 63 per cent at one point.
“With the statement from Dr Mahathir, it is highly likely that a deal will be reached. What investors are now eager to find out is how much is DRB-HICOM buying the stakes for and at what price or terms would the general offer be,” said a research head from a local brokerage when contacted yesterday.
DRB-HICOM shares closed unchanged at RM2.12, although it hit a high of RM2.19 during the morning session.
On the sidelines of the MIDF Investment Forum in Langkawi last Saturday, Dr Mahathir said that he “understands Khazanah will sell shares to DRB-HICOM, although it hasn’t been announced yet”.
He added that the share sale deal between Khazanah and DRB-HICOM had his “blessings”.
Although DRB-HICOM has a proven record in handling large projects, Dr Mahathir said he had concerns on its ability to come out with funds for Proton’s needs.
“DRB-HICOM has to invest a lot of money. This is a very big deal. I’m worried if the buyer doesn’t have enough money to pump into Proton.
“Since there are three bidders, the buying price is very high, higher than the market price. So, making profit would be difficult,” he said.
Earlier, Business Times reported, citing sources, that of the initial four bidders, only two had been shortlisted for the sale. They were key shareholders of the Naza Group and DRB-HICOM.
It was also believed that the bids were between RM6 and RM7 a share.
On whether Khazanah should sell its stakes in Proton, the former prime minister said it is Khazanah’s right to do so.
DRB-HICOM used to own more than 27 per cent of Proton before selling that stake to Petronas in 2000.
Proton posted RM155.61 million net profit on the back of RM8.96 billion revenue in its last financial year ended March 31 2011.
Kuala Lumpur: Shares of Proton Holdings Bhd rose by more than 6 per cent to RM4.23 yesterday after its adviser Tun Dr Mahathir Mohamed confirmed that Khazanah Nasional Bhd will sell its 42.7 per cent stake in the national carmaker to DRB-HICOM Bhd.
Speculation of DRB-HICOM acquiring stakes in Proton, which has been going for years, resurfaced recently.
Over the past two weeks, Proton shares were actively traded, with its mother shares rising more than 63 per cent at one point.
“With the statement from Dr Mahathir, it is highly likely that a deal will be reached. What investors are now eager to find out is how much is DRB-HICOM buying the stakes for and at what price or terms would the general offer be,” said a research head from a local brokerage when contacted yesterday.
DRB-HICOM shares closed unchanged at RM2.12, although it hit a high of RM2.19 during the morning session.
On the sidelines of the MIDF Investment Forum in Langkawi last Saturday, Dr Mahathir said that he “understands Khazanah will sell shares to DRB-HICOM, although it hasn’t been announced yet”.
He added that the share sale deal between Khazanah and DRB-HICOM had his “blessings”.
Although DRB-HICOM has a proven record in handling large projects, Dr Mahathir said he had concerns on its ability to come out with funds for Proton’s needs.
“DRB-HICOM has to invest a lot of money. This is a very big deal. I’m worried if the buyer doesn’t have enough money to pump into Proton.
“Since there are three bidders, the buying price is very high, higher than the market price. So, making profit would be difficult,” he said.
Earlier, Business Times reported, citing sources, that of the initial four bidders, only two had been shortlisted for the sale. They were key shareholders of the Naza Group and DRB-HICOM.
It was also believed that the bids were between RM6 and RM7 a share.
On whether Khazanah should sell its stakes in Proton, the former prime minister said it is Khazanah’s right to do so.
DRB-HICOM used to own more than 27 per cent of Proton before selling that stake to Petronas in 2000.
Proton posted RM155.61 million net profit on the back of RM8.96 billion revenue in its last financial year ended March 31 2011.
