Malaysian Government Yet to Decide on Sepang Sale

Malaysia has yet to decide if it will sell the Sepang Formula One racing circuit to state oil firm Petronas or to another party, the state-run Bernama news agency reported on Monday.

State-controlled Malaysia Airport Holdings Bhd (MAB), the country's biggest airport operator which also operates the circuit, said in early December Petronas was in talks to buy the track.

But Prime Minister Mahathir Mohamad was quoted by Bernama as saying no decision had been made.

"We want to see the Sepang circuit well managed and used to the maximum. The government has not really made any decision yet whether to give it to Petronas or any other people," Mahathir told reporters on Sunday.

He said the government would have to see if the potential buyer wanted to use the track just for Formula One or for other events as well.

"We will have to know what they want to use the circuit for. Obviously it's for F1 but F1 is only once a year...you can't build a circuit that size without using it fully," he said.

Bernama gave no further details.

Analysts said the MAB move could help Dutch group Schiphol International BV go ahead with its proposed acquisition of a 30 percent stake in the Malaysian company.

Terms of the Schiphol-MAB deal - valued at up to $260 million - remained under wraps but analysts said the Dutch company had insisted that MAB hive off its non-core assets such as the F1 track.

The Dutch airport operator signed in August a preliminary pact with the government to buy the stake - in two tranches of 20 percent and 10 percent.