Ex Prime Minister and also being Proton’s advisor, Tun Dr. Mahathir Mohamad revealed that Khazanah Holdings is likely to sell 42.7% stake in Proton Holdings Bhd to DRB-Hicom. According to Tun Mahathir, Khazanah wasn’t perform their task very well in injecting money into Proton which needs funds for its research and development in producing new products.
Tun Mahathir believed that DRB would be capable in aiding Proton’s development due to its financial and management capabilities.
“I worry about the buyer (DRB-Hicom) having enough money to inject into Proton. The shares it will be buying are above market price, which will make profitability difficult. But I believe in DRB-Hicom’s capabilities,” said Mahathir at the MIDF INvestment Forum in Langkawi.
"DRB Hicom is quite well run. They also produce cars for Suzuki, Mercedes and Volkswagen. This company also belongs to the Al-Bukhary Group, which has a lot of other businesses, including port operations. They seem to be able to do business," the former prime minister said in an interview with Bernama and Bloomberg.
Khazanah Nasional as Proton’s major shareholder also approached several other companies such as UME Holdings Bhd, Sime Darby Motors, Hyundai-Berjaya Sdn Bhd and Naza Group to sell its stake.
Tun Mahathir hoped Khazanah Nasional would sell its stake at a reasonable price.
"Proton needs financing. So, it must have some people who can inject money into Proton. If the price is too high, it will become difficult for the investors to turn the company around," he said.
Informed by Tun Mahathir, Khazanah Nasional has no plans to sell its stake to foreign companies as Proton would lose its identity.
"Proton needs to remain as the national car and strengthen its engineering capability," added Tun Mahathir.
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