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Tabung Haji now reduces stake in DRB-Hicom

 | May 19, 2017

Pilgrim’s fund has begun selling some of their shares, due to heightened efforts to sell a huge stake in Proton to a foreign partner, says report.

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KUALA UMPUR: Lembaga Tabung Haji has sold some of its shares in DRB-Hicom Bhd following serious efforts to sell a stake in Proton Holdings Bhd to a foreign partner.

The Edge reported that the pilgrims’ fund disposed of 4.38 million shares on May 17, bringing its direct interest in DRB-Hicom to 5.3%.

According to DRB-Hicom’s Annual Report 2016, Tabung Haji owned 91.4 million shares or a 4.73% stake as at June 30, 2016, the report said.

However, Tabung Haji began acquiring more shares in DRB-Hicom from March 6 this year to reach 5.69% on April 26. After that, it started disposing some of the shares.

DRB-Hicom’s wholly-owned Proton is in talks to take on board a foreign strategic partner to ensure its sustainability.

Among the companies said to be interested in the deal are Chinese automaker Geely Automobile Holdings Ltd, and French companies PSA Group and Renault SA.

Reports have suggested that DRB-Hicom might sell up to 51% of equity in Proton to a foreign party, although it denied it previously.

The Edge reported that the proposal to sell such a huge stake had excited share traders.

At 12.30pm today, it said, the company’s share price rose 9 sen or 5.29% to RM1.79 with 20.2 million shares transacted for a market capitalisation of RM3.48 billion. Year-to-date, the counter had increased 55.65%, The Edge reported.


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