Malaysian Government sells its share in Proton

Proton dealership

News reports tell us the Malaysian Government has sold its stake in Proton for a reported AU$401m. An announcement on the implications for Lotus, owned by Proton, is expected in the next 24 hours or so.

Khazanah Nasional, the state owned investment company, sold its 42.7% share in Proton Holdings to DRB-Hicom, which has also agreed to submit an offer to buy Proton’s remaining shares. The total deal could be around AU$933m.

DRB-Hicom has links to European car makers Mercedes and Volkswagen as well as Honda. It is hoped the cash-injection and renewed impetus from Proton’s new owners will help revive its recent flagging fortunes.

[Source: Autocar & Business Spectator]