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No plan to sell off Lotus
by hlk Mon 07 May 2012, 08:32
DRB-HICOM Bhd has put a stop to the plan by the former management of Proton Holdings Bhd to sell off Lotus Group International Ltd.
It is understood that a closeddoor meeting was held recently in Norwich, Britain, the home of the sportscar maker, headed by Proton’s executive chairman and new Lotus chairman Datuk Seri Mohd Khamil Jamil.
Khamil is also the managing director of DRBHICOM, the new owner of Proton, which in turn owns Lotus.
British media reported that Khamil met with British Business Secretary Vince Cable and South Norfolk member of parliament Richard Bacon to allay fears that Proton was about to the pull the plug on Lotus.
The Lotus plant, which employs some 1,200 people, is located in Bacon’s constituency.
As a result of the meeting, the British government will now positively review a £10 million (RM49.2 million) grant that it had earlier been urged to discontinue.
Business Times understands that the previous Proton management team had hired KPMG to find a buyer for Lotus.
KPMG is one of the largest professional services networks in the world and also one of the Big Four auditors, along with Deloitte, Ernst & Young and Price waterhouse Coopers.
It is understood that KPMG had identified China’s Youngman Automobile Group Co, a manufacturer of automobiles, buses and
trucks, Genii Capital, headed by Gerald Lopez, who is the owner of the Renault Formula One racing team, as well as a private Arabian investor as potential buyers.
“But we have been informed that Proton has not made any decision on Lotus. It is now waiting for the due deligence report,” the
source added.
Business Times reported last month that DRB-HICOM had hired Ernst & Young and a unit from the influential Rothschild Group to
conduct a due diligence on Lotus.
Affin Investment Bank said in a September 2011 report that Lotus was expected to continue bleeding red ink until 2014 at the very least.
Business Times, however, understands that Lotus is in dire straits, with Proton having to pump in between £5 million and £8 million a week into it.
“This has been happening since January. The Lotus dream is turning into a nightmare for Proton. Those responsible must be held accountable,” said a banker familiar with the
matter.
It is understood that a closeddoor meeting was held recently in Norwich, Britain, the home of the sportscar maker, headed by Proton’s executive chairman and new Lotus chairman Datuk Seri Mohd Khamil Jamil.
Khamil is also the managing director of DRBHICOM, the new owner of Proton, which in turn owns Lotus.
British media reported that Khamil met with British Business Secretary Vince Cable and South Norfolk member of parliament Richard Bacon to allay fears that Proton was about to the pull the plug on Lotus.
The Lotus plant, which employs some 1,200 people, is located in Bacon’s constituency.
As a result of the meeting, the British government will now positively review a £10 million (RM49.2 million) grant that it had earlier been urged to discontinue.
Business Times understands that the previous Proton management team had hired KPMG to find a buyer for Lotus.
KPMG is one of the largest professional services networks in the world and also one of the Big Four auditors, along with Deloitte, Ernst & Young and Price waterhouse Coopers.
It is understood that KPMG had identified China’s Youngman Automobile Group Co, a manufacturer of automobiles, buses and
trucks, Genii Capital, headed by Gerald Lopez, who is the owner of the Renault Formula One racing team, as well as a private Arabian investor as potential buyers.
“But we have been informed that Proton has not made any decision on Lotus. It is now waiting for the due deligence report,” the
source added.
Business Times reported last month that DRB-HICOM had hired Ernst & Young and a unit from the influential Rothschild Group to
conduct a due diligence on Lotus.
Affin Investment Bank said in a September 2011 report that Lotus was expected to continue bleeding red ink until 2014 at the very least.
Business Times, however, understands that Lotus is in dire straits, with Proton having to pump in between £5 million and £8 million a week into it.
“This has been happening since January. The Lotus dream is turning into a nightmare for Proton. Those responsible must be held accountable,” said a banker familiar with the
matter.
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