Thursday, February 16, 2017

PROTON's Foreign Strategic Partner decision to be made by the first half of 2017

DRB-HICOM Berhad have confirmed again that will only conclude and announce their decision within the first half of this year. There have been tons of speculation on the matter and I had mentioned earlier that all of this is mere talk and even any 'expert' opinion will just be an opinion until the actual decision is released to the public. 


As DRB-HICOM is a public listed entity, it must obtain the necessary regulatory approvals and clearance that will pave the way for the selected FSP to acquire shares in PROTON. Every change in the administration and shareholding in a public listed company would need to have an official statement filed with the bourse. In this case the KLSE. So when such a deal goes through, everyone should know. 

In the meantime, no need to become automotive industry analysts. May or June 2017 is just a few months away. But I would suggest that maybe the good thing to do is start stocking up on shares of Proton's holding company? Any deal that goes through means there could be sums of investments involved. Mainly money obviously. Whether it will be French money or China money. It is still money. 

PRESS RELEASE
PROTON FSP DECISION WITHIN FIRST HALF 2017

SHAH ALAM, 15 February 2017: DRB-HICOM Berhad (DRB-HICOM) hopes that the public will

not be misled by various reports that we have already selected a foreign strategic partner

(FSP) for our wholly-owned carmaker, PROTON Holdings Berhad (PROTON). At present, we

are focussed on going through the critical process of identifying the ideal FSP for PROTON,

and an announcement of the decision will be made in due course.

There have been many reports that have suggested that DRB-HICOM’s search for a FSP will

be finalised by today, 15 February. We wish to reaffirm that as we have stated previously,

we will conclude and announce our decision within the first half of this year. We will

however endeavour to complete as early as possible.


We have also stated previously that this search is complex and thus, a time-consuming

process. Upon receipt of the bids, DRB-HICOM will start detailed negotiations with the

bidders to ensure the key considerations we stated before are met by the potential FSP;

these are the strategic, operational and culture fit.

DRB-HICOM will then start the process for internal approvals, including convening a

Shareholders’ meeting; as well as obtaining the necessary regulatory approvals and

clearance that will pave the way for the selected FSP to acquire shares in PROTON.

We urge the public to not be misled by reports related to the FSP search. DRB-HICOM will

make the proper announcement once this process is completed.

ENDS

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