Show proof of funding next week

KUALA LUMPUR: Khazanah Nasional Bhd has asked the interested bidders for its 42.7% block in Proton Holdings Bhd to
show proof of funds next week, sources familiar with the matter tell The Edge Financial Daily.
It is learnt that the sovereign wealth fund has set aside appointment dates for the whole of next week to assess the funding
mechanisms of the various bidders.
While the dates are not certain, it is understood that Tan Sri Syed Mokhtar Al-Bukhary’s DRB-Hicom Bhd will meet Khazanah
in the middle of the week while Datuk Seri Mohd Nadzmi Mohd Salleh, the chairman of Proton who has submitted a bid for the
national car maker, is likely to meet Khazanah earlier in the week.
Syed Mokhtar is said to have roped in Maybank Investment Bank Bhd to assist DRB-Hicom in the deal. While the outcome is
not known yet, it is widely speculated that DRB-Hicom is the front runner to bag the stake in Proton.
Syed Mokhtar, who has almost a 56% stake in DRB-Hicom, is known to be close to former prime minister and Proton adviser
Tun Dr Mahathir Mohamad.
Early this week, DRB-Hicom confirmed its interest in Proton, announcing to Bursa Malaysia that it “has always viewed Proton
as an important automotive industry player and accordingly DRB-Hicom was on the lookout to explore any viable proposal(s)
which will benefit and add value to the group’s business and expansion plans.
“In this regard, the company has submitted a bid for the acquisition of Proton’s shares held by Khazanah,” DRB-Hicom said in
its announcement earlier this week.
Many say DRB-Hicom will rope in German auto giant Volkswagen AG, which DRB-Hicom has a collaboration agreement with
and does contract assembly for at its assembly plant in Pekan.
DRB-Hicom closed yesterday at RM2.09, inching up one sen with 1.85 million shares traded.
Nadzmi is likely to meet Khazanah early next week to prove his financial might in his pursuit of Proton. Although it is not clear
who Nadzmi’s merchant bankers are, some say CIMB Investment Bank Bhd may be roped in.
It is understood that Nadzmi and the other top brass of Proton met Prime Minister Datuk Seri Najib Razak when he visited the
Proton plant in Shah Alam last Saturday as part of a meeting between the premier and industrialists in Selangor.
It is not clear if Khazanah has set other appointments, apart from the tentative meetings with DRB-Hicom and Nadzmi.
Tan Chong Motor Holdings Bhd was rumoured to have been invited to bid for Khazanah’s interest in Proton, but the company
threw cold water on the speculation.
Other parties interested in placing a bid could be businessman Tan Sri AP Arumugam teaming up with Gerald Lopez of Genii
Capital, but this remains unsubstantiated.
Yesterday, Proton surged 18 sen to close at RM5.46 with close to 16 million shares changing hands. According to sources,
the offer price could be anywhere between RM5.50 and RM6, which means that the stock’s further rise could be capped.