DRB-HICOM, who currently own and manage Proton has announced the departure of Proton Holdings Bhd CEO Dato’ Ahmad Fuaad Kenali effective 30 September 2017. Fuaad was appointed as CEO of PHB on 1 April 2016, after assuming the position of Chief Operating Officer/Senior Group Director of DRB-HICOM in 2013. This is following the announcement of Proton's search for a foreign strategic partner, Zhejiang Geely Holding Group.
Of course, it has been heard on the grapevine that Dato' Ahmad Fuaad will be on to another DRB or even a government linked entity but that is another matter altogether. With the signing of the Definitive Agreement between Geely and DRB-Hicom awhile back, both parties are now finalising the new business plan for Proton's future as well as also finalising who sits on Proton Holdings' Board of Directors.
While DRB-Hicom will own 51.1% of the shares, we have heard that DRB-Hicom will be relinquishing control of a major portion of Proton's affairs to Geely. This actually means a new Geely appointed CEO (which is why Dato' Ahmad Fuaad has actually accepted another position elsewhere) and some have said that there will also be a new Chief Procurement Officer too.
A new Chinese appointed CEO and a new Procurement Officer (if the talk is true) will change Proton in one way or another. It is believed that with these people in place, there would be better control within Proton's supply chain. The supply chain has always been an issue with Proton and this could straighten things out. Better quality vendors mean better parts for Proton. Let's hope.
Anyway, some may ask why has it taken so long to finalise Proton's new Board of Directors, new CEO, new senior management staff and the totally new business plan. Well, firstly, Geely is a public listed entity over in China and even there there are regulatory bodies that it has to seek approval from. One of the bodies that any public listed company will need to comply is the securities commission or the government. Even the takeover of Volvo took around 6 months before it was totally finalised. One of the reasons was the approval required by Geely to do so.
Expect the Proton-Geely joint venture to be finalised very soon. If it took Geely 6 months to get Volvo, do expect the same amount of time before the Proton-Geely deal is concluded in its entirely.
Of course, expect rumours to fly around like crazy till then. This is Malaysia. Everyone believes in everything else 90% of the time. We on the other hand will just wait for the official announcement to come out.
PRESS RELEASE
DRB-HICOM, GEELY HOLDING CORPORATE
EXERCISE CLOSE TO COMPLETION
SHAH ALAM, 15 SEPTEMBER: Following the conclusion of the search for a suitable
foreign strategic partner (FSP) for PROTON Holdings Berhad, DRB-HICOM Berhad
(DRB-HICOM) and Zhejiang Geely Holding Group (Geely Holding) are working
towards completion of this corporate transaction which is expected to materialise
very soon. Currently, both DRB-HICOM and Geely Holding are intensifying efforts to
finalise the detailed business plan for PROTON Group.
The detailed business plan is vital towards producing a solid “road-map” for PROTON
Group for the years ahead; and is one of the key items to be concluded as part of the
completion exercise. The business plan will incorporate strategies for both
companies to develop new vehicles together for the global market.
Main Companies and Board of Directors
DRB-HICOM and Geely Holding hold 50.1% and 49.9% stakes in PROTON Group
respectively. The PROTON Group is broken down into three key entities which are;
PROTON Holdings Berhad (PHB), which is the holding company; Perusahaan
Otomobil Nasional Sdn Bhd (PONSB), a 100% subsidiary of PHB, as the main
production, operations, manufacturing and marketing company; and PROTON Edar
Sdn Bhd, a 100% subsidiary of PHB, as the main distribution outfit of the Group. For
all three entities, DRB-HICOM has one additional seat at the Board of Directors level;
matching the 50.1% that DRB-HICOM holds.
Upon the completion of the transaction soon, an announcement shall be made in
due course in relation to the composition of the board of directors of these
companies. Each of the companies shall have board representations from both DRB-
HICOM and Geely Holding.
Apart from future appointments of the board members, the administrations of the
affairs at PROTON Group are as follows:
DRB-HICOM’s Group Managing Director, Dato’ Sri Syed Faisal Albar, will continue
with his key role as the overall Chairman of PHB. Amongst others, Syed Faisal’s role is
to ensure that the tie-up will achieve its benefits and ultimately, provide a return on
investment to the shareholders, namely DRB-HICOM and Geely Holding.
At the same time, DRB-HICOM wishes to announce the departure of Dato’ Ahmad
Fuaad Kenali as the Chief Executive Officer of PHB effective 30 September 2017. Syed
Faisal commended Fuaad on his tenure at the carmaker.
“He has done an impeccable job in his short tenure at PHB. Under his watch,
PROTON had rolled-out four new models in a span of eight short months. He also
played a vital role in closing PROTON’s search for a suitable FSP. The need for an FSP
in PROTON was one of the key priorities of DRB-HICOM at the point of our
acquisition of PHB in 2012”, Syed Faisal emphasised.
Fuaad was appointed as CEO of PHB on 1 April 2016, after assuming the position of
Chief Operating Officer/Senior Group Director of DRB-HICOM in 2013.
“During his leadership, PROTON saw a consistent improvement in business
operations. Both the Boards of DRB-HICOM and PHB express our utmost gratitude
for his immense contribution both at DRB-HICOM and at PROTON; ending with the
highly successful outcome of having Geely Holding as an FSP for PROTON Group.
Fuaad will be assuming a big role with a related company and the Boards wish him
the best for his future undertakings”, added Syed Faisal.
Part of the Definitive Agreement signed between DRB-HICOM and Geely Holding is to
ensure that Geely Holding not only hold an investment in PROTON Group but also for
them to lend expertise in the area of production, manufacturing, operations and
marketing; namely in PONSB. Pursuant to this, upon completion of this corporate
transaction, Geely Holding shall be nominating a suitable candidate as the Chief
Executive Officer of PROTON Group’s PONSB.
“PONSB is the bulk of the operations of PROTON Group, and thus it is critical that we
have the right person for the job. An announcement shall be made in due course,”
explained Syed Faisal.
In order to ensure a smooth integration, Dato’ Radzaif Mohamed will remain as a key
officer at PROTON Group and will continue in his role as Deputy CEO at PONSB.
Similarly, Abdul Rashid Musa, who was named as CEO of PROTON Edar Sdn Bhd in
February 2017, will also continue in his role as the CEO at the distribution arm.
“With Radzaif and Rashid remaining in their positions, this ensures continuity within
the PROTON Group. It will also ease the transition of the future CEO of PONSB and
this can only be good for the venture”, added Syed Faisal.
DRB-HICOM and Geely Holding signed a Heads of Agreement on 24 May 2017 to
enable the Chinese carmaker to become a FSP for PROTON. On 23 June, both parties
signed the Definitive Agreement in Kuala Lumpur witnessed by Prime Minister Dato’
Seri Mohd Najib Tun Abdul Razak.
ENDS
No comments:
Post a Comment