KUALA LUMPUR (Jan 16): Khazanah Nasional Bhd is divesting its 42.72% stake in PROTON HOLDINGS BHD [] to DRB-Hicom via a conditional sale with a price consideration of RM5.50 per share or RM1.291 billion cash.
In a statement Monday, Khazanah said the decision to divest its stake in Proton to DRB-Hicom was made after detailed evaluation of various proposals to ensure that due process was observed, proper financial value was received and that the new shareholder will be able to bring Proton to the next level of strategic growth, in line with the aspirations of the industrial development of the national automotive sector.
Upon completion of the sale and purchase agreement, DRB-HICOM will be obliged to undertake a mandatory general offer on the remaining Proton shares, it said.
The statement from Khazanah confirmed a report by The Edge Financial Daily, citing industry sources on Monday, that said that DRB-Hicom was understood to have secured Khazanah's 42.7% stake in Proton, with only a few minor issues left to seal the deal.
Khazanah managing director Tan Sri Azman Mokhtar said it was another significant milestone in the sovereign wealth fund’s strategic divestment programme as it represented the largest in size to date.
“The divestment is a further example of Public-Private Partnerships, whereby strategic divestments are made with the aim of putting Government-linked companies (GLCs) on a stronger and more competitive footing, and at the same time enhancing private sector participation and building the entrepreneurial capacity of Malaysian businesses in key economic sectors,” he said.
Khazanah said that over the last five years, it had received numerous proposals regarding its stake in Proton, adding that it received a number of proposals in recent weeks and that a comprehensive evaluation was conducted.
“It included an assessment based on several key criteria, namely , having the financial ability and resources to undertake the acquisition; resources to invest further in the business; promoting the transformation of the entire Malaysian automotive industry via Proton and its value chain; and the commitment to maintain the operational integrity of Proton and its industry ecosystem.
“This commitment is crucial as Proton, being a national car manufacturer, has significant influence and impact on the entire value chain of the national automotive sector,” it said.
Khazanah said DRB-Hicom’s proposal also demonstrated the company’s extensive involvement in the automotive sector and its network of strategic partnerships, both local and international.
“DRB-Hicom’s proposed strategy and business plan provides an effective platform to enhance Proton’s sustainability and meet its long-term growth needs. It also submitted an offer price that was acceptable to Khazanah,” it said.
In a statement Monday, Khazanah said the decision to divest its stake in Proton to DRB-Hicom was made after detailed evaluation of various proposals to ensure that due process was observed, proper financial value was received and that the new shareholder will be able to bring Proton to the next level of strategic growth, in line with the aspirations of the industrial development of the national automotive sector.
Upon completion of the sale and purchase agreement, DRB-HICOM will be obliged to undertake a mandatory general offer on the remaining Proton shares, it said.
The statement from Khazanah confirmed a report by The Edge Financial Daily, citing industry sources on Monday, that said that DRB-Hicom was understood to have secured Khazanah's 42.7% stake in Proton, with only a few minor issues left to seal the deal.
Khazanah managing director Tan Sri Azman Mokhtar said it was another significant milestone in the sovereign wealth fund’s strategic divestment programme as it represented the largest in size to date.
“The divestment is a further example of Public-Private Partnerships, whereby strategic divestments are made with the aim of putting Government-linked companies (GLCs) on a stronger and more competitive footing, and at the same time enhancing private sector participation and building the entrepreneurial capacity of Malaysian businesses in key economic sectors,” he said.
Khazanah said that over the last five years, it had received numerous proposals regarding its stake in Proton, adding that it received a number of proposals in recent weeks and that a comprehensive evaluation was conducted.
“It included an assessment based on several key criteria, namely , having the financial ability and resources to undertake the acquisition; resources to invest further in the business; promoting the transformation of the entire Malaysian automotive industry via Proton and its value chain; and the commitment to maintain the operational integrity of Proton and its industry ecosystem.
“This commitment is crucial as Proton, being a national car manufacturer, has significant influence and impact on the entire value chain of the national automotive sector,” it said.
Khazanah said DRB-Hicom’s proposal also demonstrated the company’s extensive involvement in the automotive sector and its network of strategic partnerships, both local and international.
“DRB-Hicom’s proposed strategy and business plan provides an effective platform to enhance Proton’s sustainability and meet its long-term growth needs. It also submitted an offer price that was acceptable to Khazanah,” it said.
