KUALA LUMPUR (Jan 18): Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar maintains that the sovereign wealth fund will book a "modest" divestment gain from selling its strategic stake in PROTON HOLDINGS BHD [] to DRB-HICOM BHD [].
Speaking to reporters during Khazanah's annual review on Wednesday, Azman dismissed reports that Khazanah's entry cost into Proton in 2002 was RM8 a share, saying that its average investment cost was lower.
Azman however declined to disclose Khazanah's investment cost in Proton or the expected divestment gain from the transaction, only saying that the RM5.50 per share price tag was slightly higher than Khazanah's holding cost for the 42.72% block.
On Monday, Khazanah announced it was selling the Proton stake for RM5.50 per share or a total cash consideration of RM1.29 billion.
To recap, news that Khazanah Nasional's stake in Proton was up for sale had pushed up Proton's share price since mid-November, from RM2.70 on Nov 14, 2011 to a high of RM5.46 on Jan 12.
Although the RM5.50 a piece offer price from DRB-Hicom was a 39.24% premium over the national carmaker's five-year average price of RM3.95, there was criticism that Khazanah could have negotiated for a better price.
Additionally, Khazanah was selling its equity interest in Proton at a 43.9% discount to Proton's net asset value of RM9.81 per share.
Speaking to reporters during Khazanah's annual review on Wednesday, Azman dismissed reports that Khazanah's entry cost into Proton in 2002 was RM8 a share, saying that its average investment cost was lower.
Azman however declined to disclose Khazanah's investment cost in Proton or the expected divestment gain from the transaction, only saying that the RM5.50 per share price tag was slightly higher than Khazanah's holding cost for the 42.72% block.
On Monday, Khazanah announced it was selling the Proton stake for RM5.50 per share or a total cash consideration of RM1.29 billion.
To recap, news that Khazanah Nasional's stake in Proton was up for sale had pushed up Proton's share price since mid-November, from RM2.70 on Nov 14, 2011 to a high of RM5.46 on Jan 12.
Although the RM5.50 a piece offer price from DRB-Hicom was a 39.24% premium over the national carmaker's five-year average price of RM3.95, there was criticism that Khazanah could have negotiated for a better price.
Additionally, Khazanah was selling its equity interest in Proton at a 43.9% discount to Proton's net asset value of RM9.81 per share.
