More about the Proton sale


Government investment arm Khazanah might be relieved to get rid of its 42.7 per cent stake in Proton, but did it get a good deal in the process?

Proton has some serious baggage in the form of Lotus, which has already used some 270m pounds of a 480m-pound facility raised for its turnaround programme.

Still, some business analysts have reservations about the pricing of Khazanah’s disposal of its Proton stake to DRB-Hicom, substantially controlled by Syed Mokhtar Al-Bukhary. This excerpt from The Edge.

While minority shareholders may be happy to cash out at a gain of about 93% since November, Khazanah will be selling its assets at almost half Proton’s book value of RM9.81 net assets per share.

Khazanah will also incur a “real” loss on the disposal after having acquired its stake in Proton for roughly RM8 per share. As Malaysia’s sovereign fund, the loss is indirectly borne by the general public. At face value, the disposal translates into a loss of about half a billion ringgit.

However, Khazanah’s holding cost is understood to be in the RM5.50 band after taking into consideration Proton’s dividend payments over the years.

Nevertheless, the general consensus is that Khazanah could have wrangled for a better price.
via DRB-Hicom buys Proton at RM5.50.

The other interesting point is that, according to M Shanmugam of The Edge, the biggest endorsement for DRB-Hicom came from Mahathir. Shanmugam claims the sale of Proton to DRB-Hicom was a done deal from the start, through no fault of Khazanah’s. The restricted competitive bidding system meant that only local companies that a majority owned by bumiputeras were invited, he said. “It’s the flawed system that picked the winner.” Only DRB-Hicom could show proof of funding by the 16 January 2012 deadline.

So what we get at the end of the day is one familiar name cropping up whenever there is a major asset divestment by Khazanah on a restricted competitive bidding basis – Tan Sri Syed Mokhtar Al-Bukhary. Concentration of wealth in one particular group is not healthy. But the way major asset disposals are being done, its seems like only one bumiputera group with financial muscle will come out on top.

Is this what you mean by Economic Transformation Programme?

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Richie Hee

Some of the interesting comments by the readers of Malaysian Insider on the news of the resignation of Proton Managing Director Syed Zainal Abidin: He has a premonition that Proton Preve might become a Proton Peeved and so better exits before all hell breaks loose. lol My wira is a 1997 and it has a rotten roof. compared it to my wife’s nissan ad resort 1995, this proton is younger but inferior quality as shown with the rotten roof. How to buy another proton if such simple thing like rust cannot get it right? What a shame!! Lee Kuan Yew… Read more »


As reported on NST today (Sat, 4 Feb, Page B16), Tun M said this on Proton:

“One time, we had a reserve of RM4 billion, which wold able to finance the growth of the future. Unfortunately, due to things done by the wrong management we have lost the cash”.

Is ‘wrong managment’ a euphemism for corruption?
He need to be more specific but we all know the answer.


The cows (lembu-s) chew the cash of our cash cow or the cash tempt the minds of the cows?
Either way, the Apanama of 80’s, 90’s & New Century Wayang Kulit can still excuse himself lightly as if the dark shadows of Malaysia Curse is also the Light for Instant Forgiveness of Irreparable Sins.

Wake up, Rakyat Malaysia. Black is Black. White is White.
Where got Kotor is Bersih at the same time?
Unless one thinks like Otak Lembu!


cost RM8 and sale at RM5.50. unless there are bonus issues to reduce average cost, how can khazanah make money? dividend income (and hence yield) from proton has been paltry at best AND IN NO WAY will cover the cost of capital to maintain the investments.

mahair says the super businessman is the best candidae to helm proton, then what choice does khazanah has? again, it looks like the people are shortchanged by one man again.


It baffles the mind that a witch-doctor turned politician turned ‘snake-oil’ type car spokesperson can still ‘play’ drawing the shortest stick game with corporate fools of GLCs.
Wonder if he has the slightest guts to play it short with global corporate honchos:
You short: lose, I short: win!


ETP = Economy Transfer Pirates.

Syiok Syiok

Proton matter aside, more liberal urban Malays could be embracing the DAP as feel no affinity for the religious brand of politics favoured by PAS or the strong whiff of Umno-ism emanating from PKR. They have chosen a third, more secular route and this does not mean that they are abandoning their religious world view, merely that they don’t see their Islamic perspective threatened by the political framework of the DAP.


Tun M as Proton advisor bought British Lotus (already non profitable, saddled with debt) in an attempt to show The British that (we) can now conquer British asset in retaliation to Jajahan British.

But we all know it was a stupid business decision as he actually bought the debt of Lotus. ‘Mahathir Beli Hutang Mat Salleh’ can well be a new Simpulan Bahasa.

Kampung folks are now unhappy that this acquisition has actually mean feeding the unemployed Mat Salleh!

Syiok Syiok

Apanama is feeding Mat Sallehs (salaries & hutang) at Lotus UK with no significant technology transfer to Proton Msia.


Where’s the transfer of technology from Lotus to Proton?

Power window?


Who does not know Khazanah sold cheap? BUT its NOT just the cheap tangible asset. The issue is how much protection Proton is going to get now? The truth is no foreign buyer will buy into Proton assuming that Proton will be protected. BUT DRB-Hicom has no leverage to hold majority IF it can’t argue for protection. The amount of protection is WORTH billions paid by car buyers..