Of the parties bidding for a stake in national carmaker Proton, Khazanah Holdings will sell its 42.7% stake to DRB-Hicom, according to Proton adviser Tun Dr Mahathir Mohamad.

The ex-PM added that that Khazanah was selling because it wasn’t pumping more money into Proton, which needs funds for R&D work on new products such as hybrid cars, according to The Star.

“I worry about the buyer (DRB-Hicom) having enough money to inject into Proton. The shares it will be buying are above market price, which will make profitability difficult,” Tun said at the MIDF Investment Forum in Langkawi. “But I believe in DRB-Hicom’s capabilities,” he said, assuring that the status of Proton as a national car would remain after the ownership change.

It was previously reported that there were three parties bidding for the Government’s stake in Proton – DRB-Hicom, a management buyout led by Proton chairman Datuk Mohd Nadzmi Mohd Salleh and parties linked to the Naza Group. Today’s report reveals that Khazanah had been also approached Sime Darby Motors, Hyundai-Berjaya Sdn Bhd, and UMW Holdings Bhd.