Petronas plans to buy KL Grand Prix circuit

Petronas plans to buy KL Grand Prix circuit

Associated Press, Kuala Lumpur, Malaysia

National oil company Petronas plans to buy Malaysia's Formula One Grand Prix circuit from another government-controlled company, a senior executive said.

But Petroliam Nasional Bhd.'s bid to buy the Sepang Circuit from Malaysia Airports Holdings Bhd. was not a bailout, Petronas President Mohd Hassan Marican said.

"Why should it be a bailout? It is part of our plan to develop and promote motor sports in the country," Mohd Hassan was quoted Thursday as telling the Business Times newspaper.

Malaysia Airports operates the Kuala Lumpur International Airport, located next to the track about 70 kilometers (43 miles) south of the country's largest city.

The ultramodern airport, which opened in 1998, and purpose- built track, which hosted Malaysia's first Grand Prix the following year, are symbols of auto racing enthusiast Prime Minister Mahathir Mohamad's hopes of making this Southeast Asian country a developed nation by 2020.

In 1995, Petronas has been one of the main sponsors of the Sauber Petronas Formula One team, which finished to 2001 season fourth in the constructors championship behind Ferrari, McLaren Mercedes and Williams.

Malaysia also has links with the Minardi team, which is expected to announce a new sponsorship deal with Malaysia along with its 2002 car this month or in January.

Sports Minister Hishammuddin Hussein said recently the new Minardi car would "definitely carry a Malaysian image."

Alex Yoong, the first Malaysian driver in Formula One racing, was signed to the Minardi team for the three last races of 2001. He failed to finish the first two races and came 16th of 17 drivers who finished the final race.

Petronas' Mohd Hassan said the company had talked about buying the Sepang circuit as far back as 1996, when Malaysia was picked to host a Formula One race.

"We will find a fair and reasonable value ... we are still negotiating," he was quoted as saying.