Proton Holdings Bhd, Malaysia’s state-controlled carmaker, surged the most in more than 13 years in Kuala Lumpur on reports the government investment fund, the company’s biggest shareholder, may sell its stake.
The stock gained 25 percent to RM4.50 at 11:58 a.m. local time, set for its steepest gain since Sept. 7, 1998. The benchmark FTSE Bursa Malaysia KLCI Index rose 0.1 percent.
State investment fund Khazanah Nasional Bhd. may “soon” ask for bids for its 43 percent stake in the carmaker, the Edge newspaper reported at the weekend, quoting people it didn’t identify. Khazanah has approached Sime Darby Motors, Sime Darby Bhd’s motoring division, Naza Group, Hyundai-Berjaya Sdn Bhd, DRB- Hicom Bhd and UMW Holdings Bhd, with DRB said to have shown interest, the report said. Proton management wants to buy a block of shares from Khazanah, according to the report.
“We don’t comment on speculation,” Mohd Asuki Abas, a spokesman for Khazanah, said in a telephone interview today. Proton Managing Director Syed Zainal Abidin Syed Mohamed Tahir couldn’t immediately reply to an e-mail seeking comment as he was in a meeting, according to a media manager, who can’t be named because of company policy.
Proton’s second-quarter profit tumbled 76 percent from a year earlier to RM15.6 million (US$4.97 million) on higher costs incurred at sports-car arm Lotus Group International Ltd. The company’s shares have dropped 0.2 percent this year.
OSK Holdings Bhd and RHB Capital Bhd upgraded their ratings on the stock to “trading buy” after the Edge report. The stock’s so-called fair value was raised to RM5, from RM2 at OSK and from RM2.90 at RHB. -- Bloomberg
The stock gained 25 percent to RM4.50 at 11:58 a.m. local time, set for its steepest gain since Sept. 7, 1998. The benchmark FTSE Bursa Malaysia KLCI Index rose 0.1 percent.
State investment fund Khazanah Nasional Bhd. may “soon” ask for bids for its 43 percent stake in the carmaker, the Edge newspaper reported at the weekend, quoting people it didn’t identify. Khazanah has approached Sime Darby Motors, Sime Darby Bhd’s motoring division, Naza Group, Hyundai-Berjaya Sdn Bhd, DRB- Hicom Bhd and UMW Holdings Bhd, with DRB said to have shown interest, the report said. Proton management wants to buy a block of shares from Khazanah, according to the report.
“We don’t comment on speculation,” Mohd Asuki Abas, a spokesman for Khazanah, said in a telephone interview today. Proton Managing Director Syed Zainal Abidin Syed Mohamed Tahir couldn’t immediately reply to an e-mail seeking comment as he was in a meeting, according to a media manager, who can’t be named because of company policy.
Proton’s second-quarter profit tumbled 76 percent from a year earlier to RM15.6 million (US$4.97 million) on higher costs incurred at sports-car arm Lotus Group International Ltd. The company’s shares have dropped 0.2 percent this year.
OSK Holdings Bhd and RHB Capital Bhd upgraded their ratings on the stock to “trading buy” after the Edge report. The stock’s so-called fair value was raised to RM5, from RM2 at OSK and from RM2.90 at RHB. -- Bloomberg
