Malaysia May Sell 30 Percent of Proton

Malaysia May Sell 30 Percent of Proton
Friday July 29, 1:29 am ET
By Joseph Edwin

KUALA LUMPUR, Malaysia (AP) -- Malaysia may sell up to a 30 percent
stake in its national carmaker Proton to Germany's Volkswagen for $440
million, according to a person familiar with the talks, a move that
could give a foreign company control in a national icon facing intense
competition from other Asian automakers

Khazanah Nasional Bhd., the government's investment arm that owns 42.7
percent of Proton, is in talks with the Wolfsburg, Germany-based
automaker to sell up to 30 percent stake in the Malaysian company, the
person said.

"The deal could be worth 10 ringgit ($2.67) a share," the person said
on condition of anonymity due to the sensitive nature of the deal,
involving the national car maker. At that price, the stake will cost
Volkswagen AG some 1.65 billion Malaysian ringgit ($440 million).

The deal could come with management control of Proton, the person said.

Khazanah and Volkswagen officials weren't immediately available for comment.

It's not immediately clear how a deal may be structured, but it is
likely that Khazanah may want to retain a "golden share" in the
company. Such shares, common in state-linked companies, give the
government veto powers over key strategic decisions.