Sime Darby to take stake in Proton

There are talks of Malaysian conglomerate Sime Darby Berhad buying up at least 32% of Proton Holdings Bhd shares, with the total deal coming up to RM 1.58 billion. This stake will be purchased from the government’s stakeholding company Khazanah Nasional Berhad. Khazanah currently holds 42.7% of Proton total shares.

Talks of this stake purchase has pushed Proton stock up by 10 cents to RM8.50. On the other hand Sime shares dropped 5 cents to RM6.05.

Sime also recently bought Australian car dealership group Kloster and aims to be a major automotive player in Australia. Kloster represents Hyundai, BMW/Mini, Honda, Nissan, Chrysler Jeep, Daihatsu and Suzuki in Australia.

Update: Queries to Proton’s management on the matter have had no response, instead Proton’s management have chosen only to say “We are currently still in discussions with VW” in a brief statement to the stock exchange.

Source: Dow Jones Newswire, The Star

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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • even change the stake owner also do not improve 'potong' quality. don't know how's current potong quality. any guys can give some input (new potong owner)…hehe…

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  • Fauzi on Sep 13, 2005 at 11:43 pm

    seems like savvy's overall quality quite goods- from savvy's owners and reviewers…..

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  • DOG THE WAN on Sep 13, 2005 at 11:55 pm

    Soon POTONG will become a ROJAK! Mixed,………….Mixed ……… wondering How to move forwards if you have too many HEADs to make decision. Sad!! Pity POTONG lei!! None of the heads has Ability to change POTONG so far!! Dont know When the new CEO will be found?…….Any future kah?

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  • rafreez on Sep 14, 2005 at 12:20 am

    I agree with u DOG THE WAN, so many decision makers can caused the company to collapse in the end…but since SIME is experienced in cars also, i believe SIME can help navigate potong to the correct direction.

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  • let's wait & see wat potong can do in coming future.

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  • cameljoe on Sep 14, 2005 at 1:34 am

    Aiya, why so long, what happen to VW-Proton talks, what is going on. What is Sime doing here? Again, more questions than answers. Did anyone notice the SRM launch is delayed?! I wonder……..

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  • FiveElements on Sep 14, 2005 at 1:43 am

    If this is real, my praises for the government under PAK LAH's leadership.

    GOVERNMENT should never have any interest in any corporation.

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  • E-Nabill on Sep 14, 2005 at 2:08 am

    im nt sure how this can help proton actually,sime hav experience in car dealership,nt really in car manufacuing,designing etc…apart from the money sime wil inject proton,it doesnt sound so strategic to me,i prefere a merger fr proton,both parties wil gain….

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  • aksMS on Sep 14, 2005 at 3:00 am

    y not P1 and P2 merge? besides, both company control different segment market…except for savvy lah. kacau daun. i think if they merge, they can control the market and perhaps kick naza out of da pic. hehehe….(i dunno y i hate naza so much!)

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  • I'm feeling bit optimist after read the news. Think about it, now politicians (which putting 'agenda melayu' above national economy) have to back off a bit from interfering Proton in making effective decisions.

    In the other words, Sime Darby can eliminates any incompetent Proton vendors( which most of them are lazy bumiputera protected by the gov). This thing of eliminating bumiputera vendors or contractors and replace them with better ones(or probably foreign ones too for cutting cost like China) has happened with other some GLCs after privatization.

    The Sime Darby as a business entity sure would always trying to make the best decision for the money invested. Who knows there probably Proton would improve after the real corporate raiders taking over from politicians?

    No matter what, still by textbooks theory(Basic Economy) we must make prediction that private entity always more efficient than government in producing right quality(and right amount of quantity too) product. Being pessimist is maybe being 'too' pessimist in this matter logically by those 'economical' economic theories that written in the textbook.

    If Sime Draby is inexperienced in manufacturing cars, then how about the Khazanah Nasional?……More experienced?…….Of course not!!!

    Come on lah, beside in the making of better Proton, at least Proton would be more racially diversified( if their product not) and that is truly Malaysia!! Yeah!!

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  • How to merges both Proton and Perodua?

    Blackmailing the Daihatsu to sell some of their 51% share in Perodua while they're still making profit from it? Please be down to earth la dear aksMS…

    However I also likeyou don't feel comfortable about Naza method of donig their business

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  • Biothing on Sep 14, 2005 at 4:23 am

    This is interesting. After all, NAZA may not succeed in taking over P1, or become the only AP King. Sick of NAZA (why I also hate his guts) trying to outdo Proton, its worse because it is only a screwdriver job, pasang saa pasang sini, siap! It is a big puzzle out there.

    The question is, when will P1 or P2 or Pn will produce hybrid car for Malaysia. I am sick of paying petrol through the nose!

    About time these all 'small' players merge into a credible entity, and start looking into ASEAN market at least.

    Can Sime become the catalyst for this transition?

    We want hybrid !!! (repeat many bimes)

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  • Pentan Sakua.... on Sep 14, 2005 at 4:34 am

    Just take it as it is and play fair..If their quality improves, on par, very good, comparable, then we should consider buying it..or else..let them mampus la..

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  • stupid rafidah on Sep 14, 2005 at 5:48 am

    Lol got proton got vw also not so much diff hahahhahahaha

    +lagi sime darby become huen xue er car

    hahah

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  • EdStevens on Sep 14, 2005 at 6:54 am

    Hey… Any Chance For Me To Be The CEO of Proton? Coz, I Wanna Make Proton Change From The Inside.. Every Single Thing… Hahahaha JJ…

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  • ah lim on Sep 14, 2005 at 6:22 pm

    guys…… they know what r they doing…… they r bussinessmen…… the combination sime + proton will help proton market( malaysia + eksport)…… they r not idiot peoples…….. malaysian always KUTUK…… wake up guys….

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  • bob said,

    September 13, 2005 @ 7:06 pm

    If Sime Draby is inexperienced in manufacturing cars, then how about the Khazanah Nasional?……More experienced?…….Of course not!!!

    —-> You maybe right bob…but the reality is Sime will appoint the right and experience ppl to run the bzness to ensure it is success whelese Khazanah wont!!! Dont forget abt ppl who changed "Asian's answer to BMW" and "My First Lotus"…pui pui pui!!!!

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  • In Fact…Naza juz a "car assembler"…where u gip them the pieces and they assemble for you thats all. They are not car manufacturer and they will not care abt the R & D of the cars to improve its quality. As long as there are pieces for them to assemble to a car…bzness done. That is still back to square even Naza took over potong and still buying parts from those potong supplier which support inferior quality potong goods!!! So far ever heard that Naza develop engine or R&D? Nah!!! juz an AP weasel which make quick money by collecting the car from the manufacturer and pass to the consumer.

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  • Proton still consider a strong entity that attracts both domestic and foreign company to own it. It just take another 'Carlos Ghosn' to save the co…and steer it to the right direction.

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  • FiveElements on Sep 14, 2005 at 9:18 pm

    BOB,

    You are right. Think this is a positive move. Since SIME is entirely a profit making corporation it will concentrate in making PROTON more profitable.

    Unlike PROTON now which almost half belongs to Khazanah who likes to do charity.

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  • on-and-off on Sep 14, 2005 at 9:21 pm

    FiveElements said,

    September 14, 2005 @ 1:18 pm

    Unlike PROTON now which almost half belongs to Khazanah who likes to do charity.

    —-> wuahahahahahahahahahahahahaha you are damn rite mate!!!!! charity…pay out without any return…thats abt charity~~

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  • Anyway…juz 2 cent thought…could it be Sime was 'forced' to eat this 'death cat'? and after they 'swept' 32% of the stake, they can appoint a foreigner (perhaps) in the board juz to clean up the mess by some of these khazanah 'expert in chaos' ? any thought??

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  • Stingray on Sep 15, 2005 at 12:05 am

    "FiveElements said,

    September 14, 2005 @ 1:18 pm

    Unlike PROTON now which almost half belongs to Khazanah who likes to do charity."

    *LOL* very ineteresting : )

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  • Quest on Sep 15, 2005 at 3:42 am

    I think that's excellent news for Proton. Make it a real PRIVATE organisation, and hopefully a organisation based on meritocracy. Then seal that deal with VW. First step to improve is to acknowledge we have a problem. By doing that, we can identify the problems and go about solving it.

    If Sime is indeed buying 32% shares, that'll mean controlling power to run the company. Hopefully they're not politically force to buy those shares and have no control of the company.

    If true, we might have better Proton in 3-5 years.

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  • Dear Biothing,

    I've posted this comment under the title–

    ————————————————————–

    'Najib hints at oil price hike again August 30, 2005'

    ————————————————————–

    bob said,

    August 30, 2005 @ 9:33 pm

    When the oil price goes up even those hybrid models does’nt help much, for the poor and the middle class especially. Because hybrid models are priced higher than most standard luxury cars like the Camry or Accord. The Prius is much more expensive than Camry (in US, at least).

    Remember that high fuel price tag is a way larger burden for the middle class users than the well-to-do users (whose mostly drives the Camry/Accord, of course) which can affords great amounts of fuel consumption without much headache.

    Personally I think the hybrid models is built mainly for the environmental purpose(less emission), not really for less consumption.

    —————————————————————

    I hope you understand the whole picture. This is just an information for you, so no offense please.

    As for summary I can tell you that 'hybrid cars' for right now(and for years to come in the future) are targeted for rich environmentalist (Hollywood celebreties as example) and not for the mass market.

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  • akari on Sep 15, 2005 at 9:06 am

    khazanah just throw the bomb to another… lol

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  • IF KAZANAH IS DOING CHARITY…. WE THANK OURSELF.

    Where is Khazanah money come from?

    the goverment? So who are paying tax annually to the goverment?

    Wise up…..

    As i said. Goverment will never leave baby proton fall into deepsh*t. Eventually, they will be safe by Government.

    Another question–>

    So who is Sime Darby?

    Common, it's also half own by goverment.. main share holder 36% own Amanah Saham Bumiputera

    … see the logic here?

    PROTON WILL BE DOING GOOD IN YEARS TO COME. NO WORRY. (DIJAMIN OLEH KERAJAAN)

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  • Wolfgang TUV on Sep 17, 2005 at 9:22 am

    potong + SD = enough money to tackel VW….

    So Simple…….

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  • Probably to get a new CEO from sime darby.

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