KUALA LUMPUR: As market speculation gathers steam that DRB-Hicom Bhd’s talks with prospective foreign strategic partners (FSP) to buy an equity stake in ailing Proton Holdings Bhd have collapsed, the conglomerate is quick to refute the rumours.
DRB-Hicom issued a statement yesterday stressing that all bidders are still in the running to be selected as Proton’s FSP, and the group hopes to complete the search for its foreign partner by the first half of the year.
“There have been news reports stating that we are left with only one bidder. I can confirm that all parties that submitted bids for Proton are still in the running and DRB-Hicom is still evaluating these bids,” said managing director Datuk Seri Syed Faisal Albar in the statement.
However, the statement did not reveal the bidders’ names. It is understood that the bidders include China’s Geely Automobile Holdings and Europe’s second-largest carmaker Groupe PSA, which owns the Citroen, Peugeot, and DS brands.
DRB-Hicom, which wholly owns Proton Holdings, explained that its evaluation of the bidders vying to be the national carmarker’s FSP has to be a “detailed” one to turn the company around and make it competitive.
“Our intent is to turn around the fortunes of Proton. There are strengths and capabilities of the carmaker that, given a new proven partner that can offer technology, capabilities and new markets, will push Proton as a brand to be reckoned with,” said Syed Faisal.
“This is why our evaluation of the bidders needs to be a detailed one. Proton and the incoming foreign strategic partner must be able to create synergies that will ensure the success of this venture,” he said in a statement yesterday.
“We are going through the tail-end of this meticulous process, and we are looking forward to completing this search by the end of the first half of this year,” he added.
Talk that DRB-Hicom has stumbled into difficulty in concluding an agreement with PSA, which is said to be the only one left in the bid, has heightened as there was no announcement made on the deal following French President Francois Hollande’s meeting with Prime Minister Datuk Seri Najib Razak.
The state visit of Hollande is part of the president’s first visit to Asean which would include Singapore and Indonesia.
Nonetheless, Najib said French carmaker, PSA, is in serious talks with Malaysia’s Proton Holdings on a possible partnership.
“It is not concluded yet, but that’s something which could be a possibility,” Najib said at a joint press conference with visiting Hollande here yesterday.
Time does not seem to be on DRB-Hicom’s side considering Proton is bleeding badly amid the declining car sales coupled with its shrinking market share.
In February, it was reported that PSA had submitted a bid to buy a stake in Proton.
Meanwhile, Geely president An Conghui was quoted by the South China Morning Post confirming that the China-based automaker had decided to withdraw from the bid for Proton last week.
In an interview with Bloomberg earlier this month Geely founder and chairman Li Shufu said DRB-Hicom had kept changing its mind. “They keep changing, today it’s this, tomorrow it’s that. They haven’t decided what they want,” said Li.
In a new twist to the event, Reuters reported quoting sources that Geely is expected to bid as early as this week for a strategic partnership with Proton.