PETALING JAYA: Two parties in the running to be the foreign strategic partner of Proton Holdings Bhd are expected to put in their final proposals today.
According to industry sources, the two parties, which are Chinese car manufacturer Geely Automobile Holdings Ltd and French automotive manufacturer PSA Group, were confident of meeting the deadline to submit their proposals for evaluation.
“There have been reports that the deal would be firmed up today. It is untrue .. both are to submit their proposals by today,” said sources.
The speculation on Proton firming up the foreign strategic partner prompted DRB-Hicom Bhd to issue a statement to clarify the matter.
DRB-Hicom stated that it would conclude and announce a decision on a technical partner for Proton within the first half of the year.
“We will, however, endeavour to complete it as early as possible. The search is complex, and thus, a time-consuming process,” DRB-Hicom said in a statement to clarify reports that had suggested that the search for the foreign technical partner would be finalised today.
DRB-Hicom stated that it would only start detailed negotiations with the bidders once the bids were received to ensure that the key considerations of strategy, operation and culture were met by the potential partner.
DRB-Hicom also explained that it would start the process for internal approvals, including convening a shareholders’ meeting as well as obtaining the necessary regulatory approvals and clearance that would pave the way for the selected foreign strategic partner to acquire shares in Proton.
“We urge the public not to be misled by reports related to the search of the foreign strategic partner, and we will make the proper announcement once this process is completed,” the conglomerate added.
Proton started the exercise to get a foreign strategic partner more than six months ago after the Government gave it financial assistance to the sum of RM1.5bil. The financial assistance was to pay off the vendors of the troubled national car manufacturer.
One of the conditions of the financial assistance was that Proton, which is wholly owned by DRB-Hicom, needed to secure a foreign strategic partner as soon as possible.
There have been reports that the Government is open to the idea of the foreign partner taking a majority stake in Proton or its manufacturing plant in Tanjung Malim.
Malaysia Automotive Institute CEO Datuk Madani Sahari had previously described Proton’s Tanjung Malim plant as a prized asset to gain access to the South-East Asian automotive market.
