Khazanah says made modest gain from Proton sale

UPDATED @ 12:13:38 AM 19-01-2012

By Yow Hong Chieh

January 18, 2012

Critics of a understanding say which Khazanah will catch a detriment by offered a resources during rounded off half of Proton's book value. Reuters pic

KUALA LUMPUR, January eighteen Khazanah Nasional has denied offered a shares in Proton Holdings Bhd for cheap, following claims it will catch a detriment for disposing of a majority interest below cost.

Khazanah voiced yesterday it would sell a 42.7 per cent interest in a inhabitant carmaker to DRB-Hicom Bhd via a conditional sale during RM5.50 per share, or RM1.29 billion cash.

Critics of a deal, however, say which a state investment arm will catch a detriment by offered a resources during rounded off half of Proton's book value of RM9.81 per share.

Khazanah will additionally catch a real detriment over a disposal after carrying acquired a interest in Proton for rounded off RM8 per share.

"RM8.00 (per share) is not a cost. Our price is significantly lower," Khazanah handling executive Tan Sri Azman Mokhtar told reporters here.

Khazanah handling executive Tan Sri Azman Mokhtar additionally disclosed which there were some-more than 3 reasonably serious bids for Proton. Picture by Jack Ooi

"We will book a benefit from this one, a modest one... So we feel a divestment price was fair," he said, noting which a land price was "somewhat lower" than RM5.50 per share.

Azman additionally disclosed which there were some-more than 3 reasonably serious bids for Proton, which he characterised as bids corroborated by full financing.

He stressed which Khazanah did not usually look during a fina! ncial st anding of a bidders but additionally their lane jot down of great corporate governance and asset utilisation, which he pronounced were some-more critical criteria.

He added which Khazanah had conducted limited behest for Proton as it was "not your normal company" but one which had a pass purpose to play in a realization of a nation's automotive policies.

DRB-Hicom pronounced today a RM1.29 billion purchase of Khazanah's interest in Proton will be often financed by Maybank.

DRB-Hicom organisation handling executive Datuk Seri Mohd Khamil Jamil pronounced 85 per cent of a appropriation will be from Maybank while 15 per cent will be from internally generated funds.

The diversified group, owned by aristocrat Tan Sri Syed Mokhtar Al-Bukhary, will additionally have to have a imperative ubiquitous suggest for all superfluous shares of Proton not owned by Khazanah value RM1.73 billion in total.

Proton shares had been trading during a five-year normal of RM3.95 prior to a counter began to stand from RM2.70 on Nov 14 to as tall as RM5.46 final Thursday on rumours of Khazanah's shares sale.

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