DRB-Hicom weighs options for Lotus

[Frederik]

DRB-Hicom weighs options for Lotus
15 Maart 2012

KUALA LUMPUR: With DRB-Hicom Bhd now in the driving seat of Proton Holdings Bhd, it will review the national carmaker’s operations and decide what to do with Lotus Group International Ltd.

“This (the approval to acquire Proton) will give the platform for us to go into Proton and do a very thorough review of the operations of Proton including Lotus.

“Until to date, we have not been fully informed of what Lotus is all about (as regards) its status, its condition and so on and so forth,” group managing director Datuk Seri Mohd Khamil Jamil told reporters after the company’s EGM yesterday.

Yesterday DRB-Hicom shareholders approved the company’s plan to buy a 42.7% stake in Proton for RM1.29 billion from Khazanah Nasional Bhd, which would trigger a mandatory general offer (MGO) for all the remaining Proton shares not owned by DRB-Hicom.

DRB-Hicom expects the acquisition of Proton to be completed within seven days from yesterday, after which Proton will become a 50.01%-owned subsidiary.

“After our thorough review, we will be in a position to evaluate the situation in Lotus and take further steps — whether for it to remain in the stable or be disposed of,” he said.

“The options are a well-known open secret, so to speak. Either we have to get Lotus to perform as what has been promised, or they have to face the consequences. There could be a change of management; there could be a change in the style of approach. There could also be a disposal of the company, but that depends on the outcome of the review and assessment,” he added.

When asked, Mohd Khalid Yusof, head of investor relations, said it was still premature to say whether he was satisfied with Lotus’ performance so far.

“Of course I’m concerned about Lotus. But to be fair, I need to have a look (to find out) whether whatever has been speculated and/or reported is the truth, and what is the situation on the ground,” he said.

Lotus has been impacting Proton’s earnings for quite a while.

Khamil: Either we have to get Lotus to perform as what has been promised, or they have to face the consequences

For the nine-month period ended Dec 31 (9M11), Lotus recorded an operating loss of RM166.6 million, 62.7% wider than the previous year’s operating loss of RM102.4 million. Its revenue fell 12% to RM427.5 million for 9M11 from RM485.9 million the year before.

-- non Lotus blabla vanaf hier --

Proton, for the same nine-month period, posted a net loss of RM68.1 million compared to a net profit of RM90.5 million a year ago, while its revenue declined 6.8% to RM5.93 billion from RM6.36 billion a year ago.

Khalid said DRB-Hicom will “very soon” announce a new management team for Proton.

“We have just approved the MGO today (yesterday) and are looking at whom we should then appoint to manage Proton. So, we would make the announcement after we have had serious consideration on this matter,” he said.

“I’ve got an idea of who [the candidates] to go there. I’ve got to look into the expertise, the talents and the areas into which the individuals are going. I will have to go through my nomination and remuneration committees, and subsequently to the board for approval,” he added.

On rumours that Volkswagen Polo was being re-badged as a Proton, Khalid said he did not know if Volkswagen had approached Proton, but was certain that it had not approached DRB-Hicom for the re-badging.

“I have been approached by many original equipment manufacturers (OEM) for the opportunities to work together with Proton, but I told them I can’t speak to them because of the constraints on the provisions of the code.

“Now that we have taken over, naturally this is the first thing we will do. Datuk Lukman Ibrahim (DRB-Hicom’s group chief operating officer) and I will start talking to the OEMs and see what’s best.

“What I will be looking at is a win-win situation, not only for Proton but also for DRB-Hicom, and the automotive industry in Malaysia,” he added.

On the company’s plans on Proton’s branding, Khalid said, “I cannot elaborate in detail what our plans (for the branding) are, but naturally what we have to do is to drive Proton forward. Whenever people see Proton (car), they say it must be cheap. That perception is something that we want to do away with.”

“It must be a reasonably priced car, but it must (also) give value to shareholders and the public who buy the car. Quality, being sophisticated and modern, and with all the latest technologies,” he said.

Khalid said DRB-Hicom is prohibited from disposing of any equity in Proton to any third party for an agreed moratorium period of two years.

However, DRB-Hicom has no plans to dispose of its shares in Proton after the expiry of the moratorium.

“It is not in DRB-Hicom’s plans to dispose of its shares in Proton. If we do need to dispose of the shares, it must be a calculated idea, which has to be carefully evaluated.”

Bron : This article appeared in The Edge Financial Daily, March 15, 2012.

[Frederik]

Toch rare situatie hoor, DRB neemt Proton over en weet niet eens exact wat er financieel bij Lotus gebeurt of houd het (Lotus of Proton) management zaken achter?

Nieuw management means exit Bahar?

[Frederik]

Anderzijds, ik dacht dat Lotus Engineering steeds winstgevend was? Moet ik es wat opzoekwerk rond doen

[Jeroenbox]

Als Lotus zo openlijk ter discussie staat kun je er wel vanuit gaan dat er wijzigingen komen. Als de baas dan ook nog zegt dat alle opties open staan en hij de waarheid nog niet helemaal kent dan kun je beginnen met je zorgen maken. Er zijn natuurlijk wel cijfers van Lotus maar ze willen even wat beter kijken. Ze zullen daarbij ook een keurig argument of dossier moeten opbouwen voor de veranderingen die ze willen doorvoeren.

[Frederik]

Change of guard at Proton this week
19/03/2012

Expect Proton to have a new chairman by either Monday or Tuesday, says a person familiar with the matter.

KUALA LUMPUR: DRB-HICOM Bhd will start making management changes in Proton Holdings Bhd, the country’s national carmaker, by as early as this week.

“Expect Proton to have a new chairman by either Monday or Tuesday,” said a person familiar with the matter.

Last Friday, Proton’s chairman and director Datuk Seri Mohd Nadzmi Mohd Salleh resigned from the board. He was a director nominated by Khazanah Nasional Bhd.

DRB-HICOM, a unit controlled by billionaire Tan Sri Syed Mokhtar Al Bukhary, bought a 42.7 per cent stake in Proton for RM5.50 sen a share.

The company currently controls some 51 per cent of Proton and intends to take Proton private, as part of a wider plan to help restructure the ailing carmaker.

Proton suffered bleeding in the third quarter ended December 31 2011, posting a loss of RM88.2 million compared with RM60.1 million loss in the same period the previous year.

Proton shares, which closed one sen higher at RM5.45 last Friday, are up by 57.97 per cent over a 52-week period, as opposed to the 5.6 per cent rise in the Bursa Malaysia benchmark index.

The rise in Proton shares, however, has much to do with DRB-HICOM’s RM5.50 apiece offer to take the carmaker private. It is understood that DRB-HICOM’s group managing director Datuk Seri Mohd Khamil Jamil is strongly tipped to take charge of Proton.

“He will be chairman by virtue of Proton being a subsidiary of DRB-HICOM,” said a source, adding that Mohd Khamil’s main task is to rationalise where possible the businesses of Proton and
DRB-HICOM.

Business Times understands that one area in which the rationalisation will eventually take place is in the distribution network.

Proton Edar Sdn Bhd is the sole marketing arm of Proton while Edaran Otomobil Nasional Bhd, a DRB-HICOM-controlled unit, engages in the marketing of Proton, Mitsubishi and Audi cars
in Malaysia.

Two years ago, DRB-HICOM had taken Edaran private, and a rationalisation exercise with Proton Edar could create a giant company, prime for an initial public offer of its own.

Bron : btimes.com.my

[Frederik]

Datuk Mohd Nadzmi Mohd Salleh over Group Lotus eerder op 05/01/2012

How about the cash hungry subsidiary Group Lotus? “If I buy Proton, I will cut it off, and probably retain a 20 to 30% stake, which translates to a lot of savings every year. There is a lot of potential buyers for Lotus, and once a deal is signed it will be written back to the books of Proton,” he said.

Bron : paultan.org

[co-driver]

Datuk Mohd Nadzmi Mohd Salleh over Group Lotus eerder op 05/01/2012

How about the cash hungry subsidiary Group Lotus? “If I buy Proton, I will cut it off, and probably retain a 20 to 30% stake, which translates to a lot of savings every year. There is a lot of potential buyers for Lotus, and once a deal is signed it will be written back to the books of Proton,” he said.

Bron : paultan.org

Den deze zal Lotus in ieder geval niet verkopen.....hij is de eerste die is buiten 'gebonjourd'

[Frederik]

Datuk Mohd Nadzmi Mohd Salleh over Group Lotus eerder op 05/01/2012

How about the cash hungry subsidiary Group Lotus? “If I buy Proton, I will cut it off, and probably retain a 20 to 30% stake, which translates to a lot of savings every year. There is a lot of potential buyers for Lotus, and once a deal is signed it will be written back to the books of Proton,” he said.

Bron : paultan.org

Den deze zal Lotus in ieder geval niet verkopen.....hij is de eerste die is buiten 'gebonjourd'

Kurt, lees es bericht erboven ... hij is vorige vrijdag (weer) aangesteld.

[FKM]

Den deze zal Lotus in ieder geval niet verkopen.....hij is de eerste die is buiten 'gebonjourd'

Frederik schreef
Kurt, lees es bericht erboven ... hij is vorige vrijdag (weer) aangesteld.

Frederik, waar lees je dat ?
er staat toch dat hij verleden vrijdag zijn ontslag heeft ingediend ?
"Last Friday, Proton’s chairman and director Datuk Seri Mohd Nadzmi Mohd Salleh resigned from the board. He was a director nominated by Khazanah Nasional Bhd."

[FKM]

Change in Boardroom
Friday 16.03.2012

Reference No. : PH-120316-36949

Company Name : PROTON HOLDINGS BERHAD
Stock Name : PROTON
Date Announced : 16/03/2012Next
Date of change : 16/03/2012
Type of change : Resignation
Designation : Chairman & Director
Directorate : Non Independent & Non Executive
Name : Dato' Sri Mohd Nadzmi Bin Mohd Salleh
Age : 57
Nationality : Malaysian
Reason : Dato' Sri Mohd Nadzmi Bin Mohd Salleh is a Director nominated by Khazanah Nasional Berhad ("KNB") to the Board of PROTON Holdings Berhad.

On 16 January 2012, Maybank Investment Bank Berhad ("Maybank IB"), on behalf of the Board of Directors of DRB-HICOM Berhad ("DRB-HICOM"), announced that DRB-HICOM had entered into a conditional share sale and purchase agreement ("SSPA") with KNB to acquire 234,734,693 ordinary shares of RM1.00 each in PROTON representing approximately 42.74% of the issued and paid up share capital of PROTON, for a total cash consideration of RM1,291,040,812 or equivalent to RM5.50 for each ordinary share of RM1.00 each in PROTON ("Acquisition").

On 14 March 2012, the shareholders of DRB-HICOM had approved the ordinary resolution for the Acquisition. Accordingly, the SSPA in relation to the Acquisition has become unconditional on the same date and upon the completion of the Acquisition, DRB-HICOM's equity interest in PROTON has increased from approximately 7.27% to approximately 50.01%. In this regard, on 14 March 2012, Maybank IB had, on behalf of DRB-HICOM, served a notice of unconditional take-over offer to the Board of Directors of PROTON informing of its intention to undertake an unconditional take-over offer to acquire all the remaining ordinary shares of RM1.00 each in PROTON ("PROTON Shares") not already owned by DRB-HICOM after the Acquisition for a cash consideration of RM5.50 for each PROTON Share.

We wish to highlight that the resignation of Dato' Sri Mohd Nadzmi Bin Mohd Salleh as the Chairman of the Board of PROTON and all other appointments by virtue of Dato' Sri Mohd Nadzmi's position as Director of PROTON, is part of the terms of the SSPA.

It is noted that pursuant to Section 37 of the Malaysian Code on Take-Overs and Mergers, 2010 ("Code"), a director of the offeree shall not resign from the Board of Directors of the offeree until the first closing date of the take-over offer or the date when the take-over offer becomes or is declared wholly unconditional, whichever is the later. In this regard, PROTON has been informed by KNB via a letter dated 16 March 2012 that KNB has obtained the approval from the Securities Commission on 9 March 2012 for a waiver from complying with Section 37 of the Code. Following this, the resignation of the nominated directors during the offer period is allowed.