KUALA LUMPUR—Malaysian state investment firm Khazanah Nasional Bhd. said it is selling its 42.74% stake in national car company Proton Holdings Bhd. to DRB-Hicom Bhd. for 1.291 billion ringgit ($411.9 million), or 5.50 ringgit a share.
The price per share represents a 6.2% premium to Proton's closing share price Friday of 5.18 ringgit. Shares of Proton and DRB-Hicom were suspended Monday morning pending this announcement.
Local regulations will require DRB-Hicom to make a mandatory general offer for the remaining shares in Proton, Khazanah Nasional said in a statement.
Under the regulations, an investor that purchases a stake of 33% or more in a company must make a general offer for all the firm's shares.
DRB-Hicom is a diversified group with automobile, financial-services and construction divisions.
It's nothing new between DRB-Hicom and Proton working together because DRB-Hicom used to be the owner of Proton.
And technically, Proton's Tg. Malim plant and R&D can be utilised to Volkswagen (VW) as well.
Courtesy information from WallStreetJournal
Courtesy information from WallStreetJournal
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