Proton Holdings Bhd was actively traded today, gaining 25 sen to RM5.43 with 40.15 million shares changing hands as at 10am.
This follows DRB-Hicom Bhd having secured Khazanah Nasional Bhd's 42.7 per cent stake in Proton at RM5.50 per share.
HwangDBS Vickers Research said the next largest shareholders, Petronas and the Employees Provident Fund (EPF), could be the key to Proton's privatisation.
Petronas and EPF as the largest stakeholders in Proton after Khazanah, hold a 7.9 per cent and 7.5 per cent stake, respectively. The rest of the shareholding is fragmented, with Skagen Funds having 1.01 per cent and others at below one per cent.
In a research note today, HwangDBS Research said DRB-HICOM would have to make a mandatory general offer (MGO), to acquire the remaining shares from minority shareholders as its acquisition is larger than 33 per cent.
It said Proton's share price is currently at the highest at between RM5.28 to RM5.46 since 2008, after reaching a low of RM2.50-RM3.00 last year.
"If the general offer (GO) lapses and Proton remains listed, its near-term prospects may be unfavourable, as the synergy with DRB-Hicom will only be realised years down the road. Proton's share price could also fall below that of the GO," it added.
Meanwhile, Hong Leong Investment Bank (HLIB) said DRB is likely to place Proton's profitability as its first priority.
"Hence, Proton is likely to gain from potential structuring to incorporate industry best practices and technology transfer from DRB's partnership, with foreign automotive players," it added.
HLIB said it is in DRB-Hicom's interest to improve the utilisation rate of Proton's manufacturing plant and achieve economy of scale.
Proton was previously always bogged down by domestic issues, affecting its ability to partner with foreign automotive players like Volkswagen (VW), General Motors and Nissan.
HLIB said DRB-Hicom's plant in Pekan is expected to reach full utilisation rate by 2015, when VW expands production volume to 50,000 per annum. "Hence, DRB will need to utilise Proton's production facility, for potential further expansion," it added.
However, HLIB is maintaining Proton's earnings for financial year 2013/14 at RM120 million and RM166 million respectively, as it is still uncertain of the company's potential restructuring scheme. -- BERNAMA
This follows DRB-Hicom Bhd having secured Khazanah Nasional Bhd's 42.7 per cent stake in Proton at RM5.50 per share.
HwangDBS Vickers Research said the next largest shareholders, Petronas and the Employees Provident Fund (EPF), could be the key to Proton's privatisation.
Petronas and EPF as the largest stakeholders in Proton after Khazanah, hold a 7.9 per cent and 7.5 per cent stake, respectively. The rest of the shareholding is fragmented, with Skagen Funds having 1.01 per cent and others at below one per cent.
In a research note today, HwangDBS Research said DRB-HICOM would have to make a mandatory general offer (MGO), to acquire the remaining shares from minority shareholders as its acquisition is larger than 33 per cent.
It said Proton's share price is currently at the highest at between RM5.28 to RM5.46 since 2008, after reaching a low of RM2.50-RM3.00 last year.
"If the general offer (GO) lapses and Proton remains listed, its near-term prospects may be unfavourable, as the synergy with DRB-Hicom will only be realised years down the road. Proton's share price could also fall below that of the GO," it added.
Meanwhile, Hong Leong Investment Bank (HLIB) said DRB is likely to place Proton's profitability as its first priority.
"Hence, Proton is likely to gain from potential structuring to incorporate industry best practices and technology transfer from DRB's partnership, with foreign automotive players," it added.
HLIB said it is in DRB-Hicom's interest to improve the utilisation rate of Proton's manufacturing plant and achieve economy of scale.
Proton was previously always bogged down by domestic issues, affecting its ability to partner with foreign automotive players like Volkswagen (VW), General Motors and Nissan.
HLIB said DRB-Hicom's plant in Pekan is expected to reach full utilisation rate by 2015, when VW expands production volume to 50,000 per annum. "Hence, DRB will need to utilise Proton's production facility, for potential further expansion," it added.
However, HLIB is maintaining Proton's earnings for financial year 2013/14 at RM120 million and RM166 million respectively, as it is still uncertain of the company's potential restructuring scheme. -- BERNAMA
