Khazanah mum on Proton speculation

KUALA LUMPUR Khazanah Nasional Bhd appeared to be open to a management buyout (MBO) or takeover of Proton Holdings Bhd but it stopped short of rebutting market speculation.


The recent strong run in Proton shares sparked rumours of apossible takeover for the carmaker from its own management or rivals like Naza Group and DRB-HICOM Bhd.

On Wednesday, Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said that he and other senior company executives will be keen to buy over the national carmaker if offered.

However, Syed Zainal Abidin dismissed the speculation that he and Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh have jointly bid for the company.

Khazanah said it does not comment on market and media speculations.

"We, however, constantly review our investment portfolio to determine the best outcome for our stakeholders," it told Business Times.

Proton's shares gained 83 sen since Tuesday and closed on Wednesday at RM3.53. But the stock has since fallen 3.4 per cent to RM3.41 yesterday.

Khazanah, the government investment arm, has a 42.74 per cent stake in Proton, while the Employees Provident Fund and Petroliam Nasional Bhd (Petronas) have stakes of 10.78 per cent and 7.85 per cent, respectively.

In the past, conglomerates like Naza and DRB-HICOM have been linked to potential deals involving Proton. DRB-HICOM used to own more than 27 per cent of Proton before selling that stake to Petronas in 2000.