PETALING JAYA: The rally in the share price of national automaker Proton Holdings Bhd that started last Thursday came to a halt yesterday, as its top management clarified to Bursa Malaysia that it is not aware of any reason for the unusual market activity in its shares.
The national automaker’s share price fell 19 sen or 4.22% to close at RM4.31 yesterday, after trading within a wide range of RM4 to RM4.94 throughout the day.
The stock started its upward surge last Thursday after rumours re-emerged that its largest shareholder Khazanah Nasional Bhd was inviting parties to bid for part or all of its stake in the group. The sovereign wealth fund holds 234.73 million shares or 42.74% of Proton’s issued and paid-up capital.
“The board of directors of Proton wishes to clarify that after making due inquiry with the board of directors and major shareholders, the company is not aware of any reason for the unusual market activity in the shares of the company recently, and further, that there is no material corporate development not previously disclosed,” the group said yesterday.
Trading in the stock was halted for one hour, from 10.20am to 11.20am, for the announcement.
The stock price surged by more than 45% in just four trading days from last Thursday to yesterday, as rumours of a potential sale, which periodically make the rounds, re-emerged.
Quoting sources, The Edge weekly reported at the weekend that Khazanah has sent out feelers and approached several automotive industry players to ask them for business plans for Proton if they were keen to take up the investment fund’s stake in the group.
According to the report, the automotive players approached include Sime Darby Bhd’s motor division, Hyundai Berjaya Sdn Bhd, UMW Holdings Bhd, the Naza Group and DRB-Hicom Bhd. However, only DRB-Hicom indicated any interest in acquiring the stake, the report said.
DRB-Hicom has in the past tried to acquire a substantial stake in Proton. In 2009, the conglomerate submitted a bid to buy 32% of Proton, but the deal failed to materialise without any concrete reasons given.
DRB-Hicom, which is 56% owned by tycoon Tan Sri Syed Mokhtar Al-Bukhary through his investment vehicle Etika Strategi Sdn Bhd, has recently stated that it will bank on mergers and acquisitions to fuel future growth.
During a press conference after its AGM in September, DRB-Hicom managing director Datuk Seri Mohamed Khamil Jamil said the company embarked on a five-year business development plan in 2006 to stabilise, rationalise and grow the group’s businesses. These include the assembling and distribution of passenger cars and other automotive businesses, financial services through Bank Muamalat Malaysia Bhd, and snail mail services through its 32.2% stake in Pos Malaysia.
He said DRB-Hicom will raise about RM1.7 billion for capital expenditure as the group enters the second phase of its development plan. This may include acquiring stakes or other corporate proposals, as the group seeks to expand its businesses through mergers and acquisitions.
This article appeared in The Edge Financial Daily, December 7, 2011.
The national automaker’s share price fell 19 sen or 4.22% to close at RM4.31 yesterday, after trading within a wide range of RM4 to RM4.94 throughout the day.
The stock started its upward surge last Thursday after rumours re-emerged that its largest shareholder Khazanah Nasional Bhd was inviting parties to bid for part or all of its stake in the group. The sovereign wealth fund holds 234.73 million shares or 42.74% of Proton’s issued and paid-up capital.
“The board of directors of Proton wishes to clarify that after making due inquiry with the board of directors and major shareholders, the company is not aware of any reason for the unusual market activity in the shares of the company recently, and further, that there is no material corporate development not previously disclosed,” the group said yesterday.
Trading in the stock was halted for one hour, from 10.20am to 11.20am, for the announcement.
The stock price surged by more than 45% in just four trading days from last Thursday to yesterday, as rumours of a potential sale, which periodically make the rounds, re-emerged.
Quoting sources, The Edge weekly reported at the weekend that Khazanah has sent out feelers and approached several automotive industry players to ask them for business plans for Proton if they were keen to take up the investment fund’s stake in the group.
According to the report, the automotive players approached include Sime Darby Bhd’s motor division, Hyundai Berjaya Sdn Bhd, UMW Holdings Bhd, the Naza Group and DRB-Hicom Bhd. However, only DRB-Hicom indicated any interest in acquiring the stake, the report said.
DRB-Hicom has in the past tried to acquire a substantial stake in Proton. In 2009, the conglomerate submitted a bid to buy 32% of Proton, but the deal failed to materialise without any concrete reasons given.
DRB-Hicom, which is 56% owned by tycoon Tan Sri Syed Mokhtar Al-Bukhary through his investment vehicle Etika Strategi Sdn Bhd, has recently stated that it will bank on mergers and acquisitions to fuel future growth.
During a press conference after its AGM in September, DRB-Hicom managing director Datuk Seri Mohamed Khamil Jamil said the company embarked on a five-year business development plan in 2006 to stabilise, rationalise and grow the group’s businesses. These include the assembling and distribution of passenger cars and other automotive businesses, financial services through Bank Muamalat Malaysia Bhd, and snail mail services through its 32.2% stake in Pos Malaysia.
He said DRB-Hicom will raise about RM1.7 billion for capital expenditure as the group enters the second phase of its development plan. This may include acquiring stakes or other corporate proposals, as the group seeks to expand its businesses through mergers and acquisitions.
This article appeared in The Edge Financial Daily, December 7, 2011.
