KUALA LUMPUR (Jan 17): Business tycoon Tan Sri Syed Mokhtar AlBukhary has to fork out over RM3 billion for the entire purchase of PROTON HOLDINGS BHD [], the national car maker.
Industry players are speculating on his moves to obtain the funds to finance the purchase.
Yesterday, Syed Mokhtar's DRB-Hicom bought 42.7 per cent stake in Proton from Khazanah Nasional Bhd via a conditional sale at RM5.50 or RM1.29 billion cash.
Once the deal is completed, expected in two months, DRB-Hicom is obliged to undertake a general offer for the remaining Proton shares at the same price.
It will have to come up with another RM1.73 billion for the remaining 52.28 per cent comprising 314.48 million shares which are not owned by Khazanah.
With such huge amount of cash needed for Proton's purchase, industry observers are saying the tycoon may be looking at a few alternatives, which could include borrowings from foreign banks.
Another alternative is to dispose his assets. Could he be looking at disposing Bank Muamalat?
With the third round of liberalisation expected in the banking industry soon, analysts said smaller banks would be merged to create large and strong banks.
Hence, it makes sense to dispose Bank Muamalat if the bank is not a large entity sooner or later, smaller banks would have to be sold anyway.
DRB-Hicom is the holding company of Bank Muamalat Bhd, controlling a 70 per cent stake, while state asset manager, Khazanah Nasional Bhd, owns the remaining 30 per cent.
Bank Muamalat started operations on Oct 1, 1999, with combined assets and liabilities brought over from the Islamic banking windows of the then Bank Bumiputra Malaysia Bhd, Bank of Commerce (M) Bhd and BBMB Kewangan.
Last year, Bank Muamalat submitted a letter of expression of interest to BIMB HOLDINGS BHD [] (BIMB) to explore a potential merger with Bank Islam Malaysia Bhd but was rejected by the board of the latter. - Bernama
Industry players are speculating on his moves to obtain the funds to finance the purchase.
Yesterday, Syed Mokhtar's DRB-Hicom bought 42.7 per cent stake in Proton from Khazanah Nasional Bhd via a conditional sale at RM5.50 or RM1.29 billion cash.
Once the deal is completed, expected in two months, DRB-Hicom is obliged to undertake a general offer for the remaining Proton shares at the same price.
It will have to come up with another RM1.73 billion for the remaining 52.28 per cent comprising 314.48 million shares which are not owned by Khazanah.
With such huge amount of cash needed for Proton's purchase, industry observers are saying the tycoon may be looking at a few alternatives, which could include borrowings from foreign banks.
Another alternative is to dispose his assets. Could he be looking at disposing Bank Muamalat?
With the third round of liberalisation expected in the banking industry soon, analysts said smaller banks would be merged to create large and strong banks.
Hence, it makes sense to dispose Bank Muamalat if the bank is not a large entity sooner or later, smaller banks would have to be sold anyway.
DRB-Hicom is the holding company of Bank Muamalat Bhd, controlling a 70 per cent stake, while state asset manager, Khazanah Nasional Bhd, owns the remaining 30 per cent.
Bank Muamalat started operations on Oct 1, 1999, with combined assets and liabilities brought over from the Islamic banking windows of the then Bank Bumiputra Malaysia Bhd, Bank of Commerce (M) Bhd and BBMB Kewangan.
Last year, Bank Muamalat submitted a letter of expression of interest to BIMB HOLDINGS BHD [] (BIMB) to explore a potential merger with Bank Islam Malaysia Bhd but was rejected by the board of the latter. - Bernama
