Khazanah selling Proton stake to DRB, says Tun Mahathir

Khazanah selling Proton stake to DRB, says Tun MahathirOf the parties bidding for a stake in national carmaker Proton, Khazanah Holdings will sell its 42.7% stake to DRB-Hicom, according to Proton adviser Tun Dr Mahathir Mohamad.

The ex-PM added that that Khazanah was selling because it wasn’t pumping more money into Proton, which needs funds for R&D work on new products such as hybrid cars, according to The Star.

“I worry about the buyer (DRB-Hicom) having enough money to inject into Proton. The shares it will be buying are above market price, which will make profitability difficult,” Tun said at the MIDF Investment Forum in Langkawi. “But I believe in DRB-Hicom’s capabilities,” he said, assuring that the status of Proton as a national car would remain after the ownership change.

It was previously reported that there were three parties bidding for the Government’s stake in Proton – DRB-Hicom, a management buyout led by Proton chairman Datuk Mohd Nadzmi Mohd Salleh and parties linked to the Naza Group. Today’s report reveals that Khazanah had been also approached Sime Darby Motors, Hyundai-Berjaya Sdn Bhd, and UMW Holdings Bhd.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Naji$ Bin Tun RosMah Lazat on Dec 12, 2011 at 12:34 pm

    Proton…… Is just a ridiculous failure brand.

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  • suresh-kumaran on Dec 12, 2011 at 12:59 pm

    protong to become hicton?

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  • Gabla on Dec 12, 2011 at 1:13 pm

    Just when Proton is improving under DSSZ…

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  • kevin lee on Dec 12, 2011 at 1:24 pm

    everyone wants a piece of this pie, sadly

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  • makcikbaruang on Dec 12, 2011 at 1:31 pm

    lor. .. hope proton not sell to tony fernandes again on rm 1 lah.

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    • Out of Luck on Dec 12, 2011 at 3:35 pm

      Why not? I would absolutely love it if they sell to Tony Fernades at RM1. Then Proton can come out with new slogan “Now Everyone Can Drive Proton” with annual “Zero Fare”…err, “Zero Cost” Proton cars excluding airport…err, govt tax. Book early for RM0.00 Proton cars!!! Huhu!

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  • raiden on Dec 12, 2011 at 1:47 pm

    proton,liabiliti khazanah nasional.

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  • Not Apanama on Dec 12, 2011 at 1:55 pm

    As at now, Proton has not made any announcements on this corporate exercise. No that this Apanama made such announcement. Is Apanama authorised to make such announcement? If not, I wish SC can charge this Apanama for market manipulation. If there is really such exercise, why not announced by the BOD of Proton or DRB Hicom via KLSE and thru Apanama. This is not appropriate.

    The market price of Proton has already moved significantly lately and this is certainly evidence of insider trading. Why SC is not doing anything? Is it because the culprit is Apanama?

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    • As far as my opinion is, Syed Mokhtar is no better than Nazmi nor Dr M himself in automotive. How would a billionaire famous for having his formal ride just in a humble old Perdana steer an automotive industry??? Steer KL taxi can lah I guess …(sorry for being a bit hard on him). I think any people who has many-many cars in home garage would do better. He/she would know more about cars, inside out. And let DSZ improves the manufacturing side of Proton.

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  • muixmuix on Dec 12, 2011 at 2:00 pm

    hope the buyer won’t make fast money by selling LOTUS right away…

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  • How about EPF currently the minor Protongkat investor? Tell EPF to buy it all lah since EPF funds RM350 Billion suck it all dry for Protongkat that can’t fix power window only to cover it up as LifeTime warranty how convenient huh!

    That’s why EPF can only give crappy 5 pct dividends as their investment mostly to bail out failed tongkat cronies and provide piggy funds to useless PTPTN loans for stupid students ends up having junk degree jobless punks

    Protongkat + EPF = 5 pct dividends best trust fund in the world who the hell are Warren Buffet George Boros Robby Kuok Donald Trumpet all of them are joke lah

    EPF RM350 Billion ready for Protongkat take it or leave it till bankrupt before 2019 such a Wawasan Korup by Dr Mamak Semua Boleh Silly Money for Silly Crony, only in BolehLand Darul Tongkat!

    So what Honda got slogan Power of Dreams when Protongkat still got best slogan of all: Power of Failure!

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  • Expatriate VN on Dec 12, 2011 at 2:11 pm

    Finally, the “3 horses” race resulted in the winner is ……………. at above market price!!!!!!!!!!!!!! Too many mega corporate acquisitions and transaction by GLCs and big companies prior to GE 13!

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  • whechegardeche on Dec 12, 2011 at 2:12 pm

    Wait, so PROTON is no longer a GLC or a national car company?
    If so, this is probably one of the biggest changes in our automotive landscape in 26 years.

    Now let’s see what DRB has under the sleeve even though it would of made more sense for the MBO: continuity, new products in the pipeline and finally giving them all the tools they need to turn the company around.

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    • Henry on Dec 12, 2011 at 6:52 pm

      Nothing earth-shattering. It’s just transferring a liability from one company to another.

      Lotus alone is enough to bleed Protong dry.

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      • whechegardeche on Dec 12, 2011 at 7:24 pm

        Well that’s quite an important transfer of liability: from taxpayer to private. If you think this is a small change…

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        • someone on Dec 13, 2011 at 10:09 am

          doesn’t make too much a difference for the rakyat as long as the ridiculously high ‘protectionism tax’ still applies

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  • VoidDance on Dec 12, 2011 at 2:13 pm

    DRB in turn will share it with VW which in turn will use Proton’s plants to assemble VWs without any regards of helping Proton to grow. Proton will die slowly. TDM get to drive all the VWs he want and the NAP will be scrap because of it because ministers, deputy ministers, gomen top brass will be given VWs as their car and everybody in Malaysia live happily ever after.

    Good job.

    Oh, I’m dreaming.

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  • Avatar on Dec 12, 2011 at 2:25 pm

    Welcome CKD VW

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  • BanyakMakanWang on Dec 12, 2011 at 2:33 pm

    aiyo!

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  • Hopefully DRB-Hicom will take Proton to a higher level and not to a higher bidder.

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  • nabill on Dec 12, 2011 at 2:46 pm

    DRB jus filed an anouncement to Bursa Msia DENYING THE STAKE BUY !

    its jus a rumour at the moment….

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  • bobdbilder on Dec 12, 2011 at 2:53 pm

    None of the mentioned suitors have involvement in product development. Money YES, commitment in actual research and development; NO. R+D have a very long return (if at all) on investment. The business concept of actually developing a product roadmap is alien to Malaysian companies. We are good at selling, but not creating. Especially big corporations who provide high returns to their investors.

    All of corporations mentioned are prone to selective rent seeking vendors. Only if DRB put their best into Proton then, it would make a difference. Someone like that in Johor Port. How do we know MMC is going to do that? Think about the learning curve they have to go through.

    How can we create when we do not have a culture that empowers, exemplify and honor creativity? And we may lose this last bastion if Proton falls in the wrong grubby hands. Let the people who have been running it take over. Nobody knows the ins and out better than them.

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  • alfie60 on Dec 12, 2011 at 3:01 pm

    Back to square one. When the late Tan Sri Yahaya of DRB was running Proton there wasnt much progress more of acquisition of equity in the companies of its vendor if they were to remain as Proton supplier.

    Selling to DRB will not improve or save Proton. DRB will be busy try to raise money just to ‘bayar bunga’ than playing the ‘pokok’. Alternatively is to increase the price of the shitty car to make more profit margin.

    It should just be sold to the highest bidder even foreigners because the locals will some how borrow money indrectly from EPF,Tabung Haji,etc. Same money circulating around with just a different face.

    Still a national burden to us.

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  • Peaceaim on Dec 12, 2011 at 3:07 pm

    At last VW got it…

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  • Now…come on…PROTON and PERODUA need to consolidate in order to pump in more money into PROTON since PERODUA understand PROTON suffering at the moment. No need DRB-HICOM. Daihatsu (aka Toyota) only controlling the manufacturing arm (aka PCSB) at PERODUA. Heard rumors that Daihatsu/Toyota planning to open new factory in Nilai. If this realise, it will kill PERODUA slowly. Now PROTON and PERODUA need each other to survive. Otherwise, thousands of families will be out of work.

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  • It’s like bunch of sleazy korup datuks trying to marry artis janda (dumped by japanese hubby before)

    But this artis janda very high maintenance materialipstick-type so only the most corrupt datuk wins

    Not only that, this artis janda also keep a secret boy-toy at norwich, england

    So whoever the winning datuk ends up not only pay for the artis but also the english boy-toy

    The only way for the datuk to keep insurance is stand-by a rich german guy as pak sanggup just in case the datuk gone broke

    Then again this artis janda have to endure being hantam by a german stud but it’s ok since artis janda’s income all kept safe by her boy-toy

    And you thought the last laugh is from that norwich boy-toy well not so fast dude

    Turns out this boy-toy offshore account at caymans island proxy all this while was for some cunning Mamak from kerala india!

    Such a genius able to scam from rich japanese, intellectual germans, bolehland cronies all of them got conned multi billions so far!

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    • Forrrestcat on Dec 12, 2011 at 4:51 pm

      Dude,you have a big problem, sure some fc us criticize oroton but dont avcuse datuks or datins wothout prooof..i can say stuff about ur mom and dad at some other blog…u suka ke..”..u think ur smart in fact u whine like straight A student who ended washing toilets in life…..

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  • BMW POWER FOREVER on Dec 12, 2011 at 3:50 pm

    this is just a mere shifting around of assets by the government

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  • Serious Fast Donkey on Dec 12, 2011 at 5:16 pm

    Khazanah should just sell its shares to scrapyards aka kedai potong.

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  • conman on Dec 12, 2011 at 5:43 pm

    Full privatisation is what Proton truly need. Cut the protectionism, either they die out or live up to the challenges of a market economy. DRB-Hicom is still a GLC with links to government officials and cronies, its time for Proton to decide on their own fate.

    Cut the bumiputera pride thing, hire the best brains out there, possibly former masterminds of the Big 3. If they die out then let anyone with the best capabilities to take over and turn it around.

    People know the company by its country of origin, so Proton will still be proudly Malaysian with a considerable number of Malaysian employees even if it is bought over by a German company. Would one consider Lamborghini to be German now? or still orgoglio Italiano? Would one consider Rolls Royce to be German now? or still proudly Anglo-Saxon?

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    • Cannot happen. Will not happen.

      Although I clicked on thumbs up, I believe these people are rotten to the core. :/

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  • wan nasir on Dec 12, 2011 at 6:00 pm

    Tun, you are not above the board to make such statements.
    Being a listed company there are rules and regulations to be
    adhered to b4 any official announcement can be made to stakeholders and the public.
    This stake belongs to Khazanah and you have no say in determining
    who gets what. Proton does not need anymore cash injection instead
    it needs a brand new direction. 25 years of protection is enough and its time
    Proton change for the better.

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  • Khazanah should sell Proton to a China or India manufacture.

    Lets them help Proton to built more variant of model with better profit margin!

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    • eggman01 on Dec 12, 2011 at 8:04 pm

      Proton is working with Hawtai…They can sell their shares to Hawtai if they want to but they didn’t do that..Hawtai’s good at making sedans(the Hawtai B21 is way better than the Proton Waja and Perdana)!

      DRB-Hicom will only buy Proton because of its assembly plants assets.

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  • squawk on Dec 12, 2011 at 8:21 pm

    So can the announcer be charged with making a false claim?

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  • QUATTRO on Dec 12, 2011 at 8:56 pm

    kalau mcm ni kawan2 semau jg beli lah proton….bile rugi simpan, bila untung nak jual2 pulak….kalu nak jual betul3 jual kepada entiti luar negara…mcm mg rover ke, volvo ke dll..senang..jgn pusing duit dlm negara shj…syarikat glc juga

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  • Proton definitely need competent R&D staffs and as well as styling. Remove out useless people!!

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    • I guess its not really the working stuff there needed to be ousted. Remember there are decision makers there such as the ‘over 80s’and the ‘tauke cityliner’, whom would decide what please their eyes to be dump for the mass M’sian people.

      Maybe these people don’t realise that even Toyoda, present chief of Toyota had to agree that it’s Toyota’s own fault of making uninspiring cars that resulted them being thrown from 1st to 3rd place biggest car maker this year! Even their bulletproof quality and durability cannot help. Proton… what does Proton has?

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  • RedBeanBun on Dec 12, 2011 at 10:18 pm

    the next move is…Protong rebadge VW. (passat, Jetta)

    Already said that long ago this is business direction.

    sorry for those existing VW owners…

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  • Masked Ryder on Dec 12, 2011 at 10:30 pm

    Danny,
    Hyundai Berjaya Sdn Bhd ? I think u mean Hyundai-Sime Darby Sdn Bhd.

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  • makeitmine on Dec 12, 2011 at 10:49 pm

    The sale of Proton to DRB-HiCOM will create the best opportunities for Proton. More business thinkers than politicians will benefit Proton.

    New businesses can be created like:

    1. JV contract assembly of foreign branded cars (forget abt Proton brand – this brand expects low profit margins for Proton/DRB-HiCOM)
    2. utilizing Lotus expertise to JV design/manufacture engines for OEMs (Danny Bahar would love to expand the engine department and supply engines for F1)
    3. designing and contract manufacturing of OEM parts (no more dependent on substandard local manufactured components)
    4. JV in design, testing and sharing of platform with foreign manufacturers (Proton on its own will not be able to sell many cars globally – realistically it is not a leader in many auto parts development. Perhaps, can be proud of Lotus tuned suspension, REEV and winning APRC).

    Proton transformation will see it grow into an adult auto manufacturer. The signs of achievements have been revealed. The problems will be the opportunities.

    If Proton focus its business like building engines/technology for all types of vehicles including military, electric trains, buses, lorries and F1 boats (police patrol) etc for OEMs may this will be more lucrative than building cheap cars for the masses.

    “Because while such things are cheap, they are not the real deal. You want beans on toast, you go to Heinz. And it’s the same story with cars.” Jeremy Clarkson

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  • Hot_hot on Dec 12, 2011 at 11:39 pm

    Are they selling all out? if this true you can assume more GLC companies are selling their shares.

    “Khazanah was selling because it wasn’t pumping more money into Proton,or maybe there is other agenda?

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  • Wheeler on Dec 13, 2011 at 7:58 am

    I pity proton bcos it changes hands so many times and you know what happens when shares change hands..

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    • DanyBahar on Dec 13, 2011 at 11:29 am

      Well is the sign that, the company in verge of collapsing with the given top gun in the company whom cant execute profitiable plans for the stake holder to be convinced to stay put in the company’s share. Laymen term , ‘exit while you can” or ” jump before the ship sink further”

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  • Melted candle on Dec 13, 2011 at 11:40 am

    I suppose the stake holders is losing faith with top management whom seems to have failure plan up in thier sleeves. Well JV or exit , this is the new strategy applied by global player to stay afloat and profitable. Is Proton waiting for WHITE KNIGHT to save them or some organization to give them the TONGKAT for them to walk. So sorry to say the are lots of KATAK BAWAH TEMPURUNG from the TOP till down, so first ,this must be eliminated for the company to grow to greater height. So who got the BALLS to tell the off. Well we can say wat we want ,in the end we are still in the lose lose situation.

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  • Proton. Seriously. You need to come up with quality cars and please gov, let other manufacturers compete healthily with the local cars so that Proton can really put an effort in producing cars. Proton’s image and reputation has become a liability.
    Cup holder pun senang tercabut.

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  • Kasturi19 on Dec 18, 2011 at 10:52 am

    Most important Proton should change their working attitude, if they are really want to improve..

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