28 April 2012

DRB-Hicom: Week 17 (23-27 April) Stock Picks Commentary

Stock Picks #2

Week high : RM 2.61 (Up 24 sen - 10%)

On 27 April, DRB-Hicom announced that it had received acceptances totaling 98.6% of the total issued and paid up share capital of Proton Holdings Bhd and will proceed to “compulsorily acquire” all outstanding shares.

Proton to be suspended from trading from 4 May 2012 onwards.

Market took this news as positive this will give DRB-Hicom total control over Proton to carry out their management strategies.

In addition, a market talk on possible sale of Lotus on 25 April (which was denied by DRB later on Friday) and the recent launch of Proton’s flagship car model Preve were expected to be beneficial to DRB-Hicom.

DRBHCOM stock rose 24 sen (10%) since 27 April to week’s highest RM 2.61 on the same day and closed at RM 2.54 at the end of this week.

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