There are talks of Malaysian conglomerate Sime Darby Berhad buying up at least 32% of Proton Holdings Bhd shares, with the total deal coming up to RM 1.58 billion. This stake will be purchased from the government’s stakeholding company Khazanah Nasional Berhad. Khazanah currently holds 42.7% of Proton total shares.

Talks of this stake purchase has pushed Proton stock up by 10 cents to RM8.50. On the other hand Sime shares dropped 5 cents to RM6.05.

Sime also recently bought Australian car dealership group Kloster and aims to be a major automotive player in Australia. Kloster represents Hyundai, BMW/Mini, Honda, Nissan, Chrysler Jeep, Daihatsu and Suzuki in Australia.

Update: Queries to Proton’s management on the matter have had no response, instead Proton’s management have chosen only to say “We are currently still in discussions with VW” in a brief statement to the stock exchange.

Source: Dow Jones Newswire, The Star