Two bidders fighting for a stake in Malaysia's DRB-Hicom will both get equity in the auto and banking group, Prime Minister Abdullah Ahmad Badawi said. State news agency Bernama quoted Abdullah on Saturday as saying a proposal mooted by one of the bidders, tycoon Syed Mokhtar Albukhary, to resolve a prolonged impasse over the sale of a 15.8 percent stake in DRB-Hicom Bhd was a good one.
Abdullah said Syed Mokhtar had proposed in a letter to him that the automotive business in DRB-Hicom be sold to Mohamad Nasimuddin Kamal Md Amin, the other bidder for the stake.
Syed Mokhtar suggested he would take the other businesses in the group, which include banking and infrastructure.
Asked whether this would mean both bidders would get equity in the group, Abdullah said: "Yes, there would be two people."
The battle for a minority stake in the company is closely watched as it pits autos businessman Nasimuddin, whose bid consortium includes a brother of the deputy prime minister, against Syed Mokhtar, who won chunks of government business during former premier Mahathir Mohamad's 22-year rule.
DRB-Hicom, which is one-third owned by state firms, holds prized banking and auto assets, including rights to distribute Honda Motor Co Ltd cars in Malaysia.
Abdullah said he has asked Second Finance Minister Nor Mohamed Yakcop to implement the formula proposed by Syed Mokhtar.
"Nor Mohamed has already discussed with the parties concerned but as of now a unanimous decision has yet to be attained," Abdullah said. "I hope this matter will not take long."
Asked whether Nasimuddin will get to buy the 15.8 percent stake, he said: "That is the issue which is being scrutinised."
The sale of the stake has been mired in confusion for months because the stake's owners - the estate of one of DRB-Hicom's founders, chairman Saleh Sulong, and other firms - have been unable to agree on a preferred bidder.
The bids have not been disclosed, but media reports say they range from 3.65 to 4.00 ringgit per share - 60-70 percent above the current share price and valuing the deal at upwards of $152 million.