DPM: Proton will remain the national car

(The Star) – Proton will remain the national car despite DRB-Hicom Bhd‘s proposed acquisition of a majority stake in the company, Tan Sri Muhyiddin Yassin said.

The Deputy Prime Minister said that DRB’s proposed acquisition of Khazanah Nasional’s 42.7% stake in Proton Holdings was aimed at strengthening the national car maker.

“Proton will never waver as our national car maker. It is run by Malaysians,” he said.

Muhyiddin said the company should now have strategic planning as the global automotive industry was challenging and Proton has to be well prepared for it.

“In this regard, DRB is in the best position to acquire Khazanah’s stake in Proton,” he added.

DRB-Hicom has proposed to acquire Khazanah Nasional’s stake in Proton Holdings for RM1.29bil or RM5.50 per share.

DRB also told Bursa Malaysia that it is proposing to acquire the remaining shares not already owned by the group at a cash consideration of RM5.50 per share.

It said the proposed acquisition was expected to create business synergies and opportunities for the DRB-Hcom group and Proton to augment the localisation and local vendor programmes.

The group will also maintain its intention and interest to safeguard the national car company while at the same time encourage, facilitate, grow and enhance Malaysia’s national automotive industry, hence making Malaysia a preferred automotive hub capable of rivalling its neighbours.