Malaysian carmaker Proton Holdings Bhd and automotive and property conglomerate DRB-Hicom Bhd said on Monday they suspended trading in their shares pending an announcement.
Proton said in a stock exchange filing that its major shareholder Khazanah Nasional Bhd would make an announcement of a material corporate transaction.
Separately, DRB-Hicom said it was planning a corporate exercise involving “a very substantial transaction.”
DRB-Hicom said last Monday it had submitted a bid for state investment arm Khazanah Nasional’s stake in Proton.
Local media had earlier quoted Proton adviser Tun Mahathir Mohamad as saying Khazanah Nasional would sell its stake in Proton to DRB-Hicom.
Khazanah held a 42.7 percent stake in Proton as at July 29 last year, according to Thomson Reuters data.
The Edge Financial Daily on Monday quoted unidentified industry sources as saying Proton’s shares could be priced above market expectations of about RM5.50 each, which would value Khazanah’s stake in the carmaker at RM1.28 billion.
Proton and Khazanah declined to comment on the report.
DRB-Hicom had no immediate comment.
Proton has struggled to grow its share in an increasingly competitive domestic market and had sought to tie up with a global car maker to boost sales.
The government had earlier been in discussions for Proton to form a partnership with several car makers including Volkswagen , but talks fell through.
Proton’s shares were last traded at RM5.18 before the suspension. DRB-Hicom last traded at RM2.17. -- Reuters
Proton said in a stock exchange filing that its major shareholder Khazanah Nasional Bhd would make an announcement of a material corporate transaction.
Separately, DRB-Hicom said it was planning a corporate exercise involving “a very substantial transaction.”
DRB-Hicom said last Monday it had submitted a bid for state investment arm Khazanah Nasional’s stake in Proton.
Local media had earlier quoted Proton adviser Tun Mahathir Mohamad as saying Khazanah Nasional would sell its stake in Proton to DRB-Hicom.
Khazanah held a 42.7 percent stake in Proton as at July 29 last year, according to Thomson Reuters data.
The Edge Financial Daily on Monday quoted unidentified industry sources as saying Proton’s shares could be priced above market expectations of about RM5.50 each, which would value Khazanah’s stake in the carmaker at RM1.28 billion.
Proton and Khazanah declined to comment on the report.
DRB-Hicom had no immediate comment.
Proton has struggled to grow its share in an increasingly competitive domestic market and had sought to tie up with a global car maker to boost sales.
The government had earlier been in discussions for Proton to form a partnership with several car makers including Volkswagen , but talks fell through.
Proton’s shares were last traded at RM5.18 before the suspension. DRB-Hicom last traded at RM2.17. -- Reuters
