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.