Proton acquired by DRB-HICOM

Proton issued yesterday the following announcement:

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/LsvAllByID/E581A6FBAFD248FD48257987003BD713?OpenDocument

(i) PROPOSED ACQUISITION BY DRB-HICOM BERHAD ("DRB-HICOM") OF 234,734,693 ORDINARY SHARES OF RM1.00 EACH IN PROTON HOLDINGS BERHAD ("PROTON") ("PROTON SHARES") REPRESENTING APPROXIMATELY 42.74% OF THE ISSUED AND PAID UP SHARE CAPITAL OF PROTON FROM KHAZANAH NASIONAL BERHAD FOR A TOTAL CASH CONSIDERATION OF RM1,291,040,812 OR RM5.50 PER PROTON SHARE ("PROPOSED ACQUISITION"); AND

(ii) PROPOSED MANDATORY GENERAL OFFER ("MGO") FOR ALL THE REMAINING PROTON SHARES NOT ALREADY OWNED BY DRB-HICOM AFTER THE PROPOSED ACQUISITION ("REMAINING PROTON SHARES") FOR A CASH CONSIDERATION OF RM5.50 PER PROTON SHARE ("PROPOSED MGO")

It is good news that there will be a Mandatory General Offer, which is normal in these cases.

But there is still the issue of possible insider trading:

http://cgmalaysia.blogspot.com/2011/12/proton-possible-insider-trading.html

After a huge run up (which started already in November 2011) in the share price, the following announcement was made on December 6, 2011:

"The Board of Directors of PROTON wishes to clarify that after making due enquiry with the Board of Directors and major shareholders, the Company is not aware of any reason for the unusual market activity in the shares of the Company recently, and further, that there is no material corporate development not previously disclosed. The focus of Management is to improve the performance of the Company and business is as usual."

In light of what has happened, authorities really should look into this matter.