Proton shares dipped 40 sen to RM7.35 after the government denied any conclusion to the Proton-Volkswagen talks. Before the rumour reported by XinHua Finance, share prices was RM6.85, then it surged 90 sen to RM7.75, more than 13 percent higher. Although the final share price was not as high as it was as it’s peak during the rumour, Proton shareholders still benefited from a higher than before price, an increase of 50 sen per share.
In other Proton news, Proton Holdings Bhd has made a move to acquire the remaining 49 percent of shares in it’s Indonesian unit, PT Proton Tracoma from Tracoma Holdings Bhd. The stake transfer benefited both parties as Proton wanted more control over the Indonesian company and Tracoma wanted to streamline it’s business. The transaction will complete by Q2 2007 and will involve RM35.5 million. PT Proton Tracoma reported a net loss of RM5.41 million for the financial period of between April 1 to Dec 31 2006. Also, PT Proton Tracoma has liabilities owed to non-trade creditors and provision of taxation of about RM8.77 million ringgit.
The rumoured announcement date is February 8 2007, that’s another 8 days more. Let’s wait and see if what XinHua Finance reported is true.
Rumours of VW winning Proton bid