Malaysia's DRB-Hicom to buy carmaker Proton
Associated Press, Kuala Lumpur | Mon, 01/16/2012 2:08 PM
Malaysian conglomerate DRB-Hicom Berhad will buy national carmaker Proton in a 3 billion ringgit ($957 million) deal that could help revive Proton's flagging fortunes.
DRB-Hicom says it will pay 1.29 billion ringgit ($412 million) for government investment arm Khazanah Nasional's 43 percent stake in Proton. It will then make an offer for all Proton shares it doesn't own at 5.50 ringgit ($1.80) a share that officials say will bring the total deal to 3 billion ringgit.
Khazanah said Monday the sale would put Proton on a more competitive footing.
Proton has seen its fortunes fade, with its domestic market share dwindling to under 30 percent from more than two-thirds just over five years ago due to greater competition.
