Puzzling local interest in Proton
teamcar - ASK any research analyst in town about Proton Holdings Bhd and everyone is likely to agree that the national carmaker needs a foreign partner to help it ride out the current slump.
But in recent months, several local automotive companies have made public their interest to take over Proton. DRB-HICOM Bhd, which is run by Tan Sri Syed Mokhtar Al-Bukhary, Naza Group, owned by Tan Sri SM Nasimuddin SM Amin and the Mofaz Group, a car distributor.
Initially, some were confused. Could Proton be rescued by a Malaysian company?
Analysts had scenarios to take into account both a local and a foreign partner, allowing them to co-exist at different levels of the group.
To follow the often cited Perodua model, a local partner could be at the holding level while a technical partner could control the manufacturing arm.
Last week, speculation reached fever pitch when DRB-HICOM held a Press conference. Group executive adviser for automotive operations, Tan Sri Abdul Rahman Omar, said he was called to the Cabinet committee on the automotive industry, to talk about the firm's bid.
DRB-HICOM has made a bid for a third of Proton and it is 100 per cent sure of its chances.
Naza wants to buy all of Khazanah Nasional Bhd's shares in Proton. At Friday's closing price, that 43 per cent block is worth some RM1.4 billion.
Should the Government sell its shares in Proton to local firms? A more pressing question is that can they turn around Proton?
"Proton needs good exports and it has to be fast in rolling out new models. Can DRB-HICOM help do that?" asks Rosnani Rasul from TA Securities.
