Business

Maybank to finance DRB’s Proton purchase

SHAH ALAM, Jan 18 — DRB Hicom’s RM1.29 billion purchase of Khazanah’s 42.7 per cent stake in national carmaker Proton will be mostly financed by Maybank the group said today.

DRB Hicom group managing director Datuk Seri Mohd Khamil Jamil said in a press conference that 85 per cent of the funding will be from Maybank while 15 per cent will be from internally generated funds.

The diversified group, which is owned by tycoon Tan Sri Syed Mokhtar Al-Bukhary will have to make a mandatory general offer for all remaining shares of Proton and Khamil said the funding will be from a mix of internal funds and bank borrowings.

DRB Hicom also used internal funds to buy Proton shares from the open market yesterday, bringing its total stake in the auto manufacturer to 50.01 per cent.

Khamil denied reports that the group might have to sell its stake in Bank Muamalat to finance its Proton acquisition.

He also said that DRB has not met with the Proton management yet and any proposals to revamp the company would have to be approved by the Proton board.

Khamil added however that the group would not sell any equity in Proton to foreign parties.

State asset manager Khazanah sold its stake in Proton as part of its divestment strategy.

It had last year also sold its shares in Pos Malaysia to DRB Hicom.

 

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