KL increases stake in Proton

KL increases stake in Proton

KUALA LUMPUR: The Malaysian government's investment arm has increased its stake in national carmaker Proton by more than 4 percent, a week after Japan's Mitsubish Motors Corp. sold its chunk of the company.

Khazanah Nasional, in a statement late on Tuesday to the Malaysian Securities Exchange, said it bought 23.9 million shares in Perusahaan Otomobil Nasional March 11 via a book building exercise, raising its stake to 191.2 million shares, or to 34.81 percent of Proton from 30.46 percent.

It didn't say from whom it bought the shares. But last week, Mitsubishi Motors placed out a 7.93 percent stake in Proton to local and foreign investors.

Earlier this month, Khazanah said it wasn't keen on purchasing the shares since this would trigger a mandatory general offer. Malaysian law requires that a company that acquires 33 percent or more of a company must make a general offer for the remaining shares. -- AP