Malaysian F1 circuit to be bought by another government company

Malaysian F1 circuit to be bought by another government company

Nirmala Menon, Associated Press, Kuala Lumpur

National oil company Petronas was unlikely to buy Malaysia's
Formula One race track, but another government-owned company
probably would, a source said Friday.

Company officials said in December Petronas was in talks about
buying Sepang International Circuit Snd. Bhd., which operates
Malaysia's Grand Prix track, from Malaysia Airports Holdings
Bhd., another government-controlled company.

But a source familiar with the plan told Dow Jones Newswires
that Petronas was now almost certainly out of the picture.

"It's highly possible that Petronas may not be taking over,
but it will definitely be somebody else," the source said.

The new buyer for the track would be a government-owned
company and was part of a plan likely to involve grouping motor
sports- related activities under one entity. The source did not
provide details.

"There is a grander plan that they want to undertake for motor
sports," the source said. "They want to consolidate that under
one umbrella."

Led by auto racing enthusiast Prime Minister Mahathir Mohamad,
the government is trying to use motor sports, especially Formula
One racing, to promote Malaysia to the world.

Petronas has been a main sponsor of the Sauber Petronas
Formula One team since 1995.

Italy's Minardi team was recently renamed KL Minardi Asiatech
for the 2002 Formula One season to help in that bid, and has
named Malaysian Alex Yoong as a driver for the season.

Petronas officials declined to comment Friday on plans for the
racetrack. Malaysia Airports officials weren't immediately
available.

The source told Dow Jones Newswires that the change in plan
does not affect the government's sale of a 30 percent stake in
Malaysia Airports to Dutch airport operator Schiphol Group. That
sale would go ahead "no matter what happens," the source said.