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Proton Selling its stake in MV Agusta
The news articles are as follows:
ITALIAN PRESS: Proton Seen Selling MV Agusta Motorcycles
Wednesday December 21, 2005, 7:52 pm
DJ ITALIAN PRESS: Proton Seen Selling MV Agusta Motorcycles
MILAN (Dow Jones)--Malaysia's Proton Holdings Bhd.(5304.KU) will meet with management of high performance motorcycle group MV Agusta Wednesday to discuss its future, Corriere della Sera reported Wednesday citing company sources.
Proton, which owns 57.7% of MV Agusta, no longer believes the investment is strategic, the paper said, and is therefore likely to seek a buyer. Prior to Proton's purchase, MV Agusta had failed talks with scooter maker Piaggio Group SpA, owned by IMMSI SpA (IMS.MI)
malaysia sun, dated nov 30, 2005.
PROTON Holdings Bhd yesterday posted a big loss for its second quarter and announced the appointment of Perodua Auto Corp executive director Syed Zainal Abidin Syed Mohd Tahir, 43, as its new managing director.
Apart from Zainal Abidin, who will take over as MD from Jan 1, Proton also named a new management team that would see Datuk Kisai Rahmat, currently joint chief operating officer, appointed executive director of its engineering and manufacturing division.
Syed Zainal Abidin
For its second quarter ended Sept 30, Proton posted a net loss of RM154.3mil, or 28.1 sen a share, compared with a net profit of RM198.9mil, or 36.2 sen a share, in the same period a year ago. For the first quarter, its net loss was RM12.4mil.
Revenue fell to RM1.8bil from RM2.2bil and the loss before tax stood at RM158.8mil compared with a profit of RM241mil previously.
For the half year to end-September, Proton made a net loss of RM166.7mil compared with a net profit of RM365.4mil a year ago.
Proton chairman Datuk Mohammed Azlan Hashim attributed the losses to the rise in component prices, reduction in margins and the RM160.7mil in provisions arising mainly from the company's Italian subsidiary, MV Agusta.
He told a media conference in Shah Alam that RM90mil of the provisions were related to doubtful debts as well as purchases made under a supply agreement.
The provisions were also for 3,000 engines in its inventory whose warranty had lapsed, and RM36mil for a mismatch of warranties between international customers and domestic component suppliers.
Azlan said that since buying a controlling stake in MV Agusta in December last year, Proton had spent an additional RM500mil on the Italian subsidiary as a result of losses and write-offs. And although Proton does not expect any more provisions for MV Agusta, the company was “taking a long look to see whether to invest in this company'.
“At the time of purchase in December last year, Proton saw MV Agusta as an opportunity to gain access to a global brand and access to engineering and design expertise,' he said, adding that from a financial perspective, the investment had “not met expectations'.
Lotus Group is still loss-making but Azlan said its businesses in Australia, Singapore and the UK were either showing signs of improvement or performing “reasonably well'.
Malaysia's Proton says in Agusta stake sale talks
KUALA LUMPUR, Dec 23 (Reuters) - Malaysia's state-controlled carmaker, Proton Holdings , said on Friday it was negotiating with a potential buyer for its stake in Italian motorcycle maker MV Agusta.
"The Board of Directors of Proton Holdings would like to inform that Proton Capital Sdn Bhd, a wholly owned subsidiary of Proton Holdings, is in active discussion with a financial investor regarding a potential transaction," Proton said in a statement, giving no further details.
Proton was replying to a stock exchange query over a newspaper report that it was seeking a buyer for its 57.7 percent stake in Agusta.
Proton reported a net loss of 154.3 million ringgit ($40.8 million) in its fiscal second quarter ended on Sept. 30, hurt by bad-debt charges related to Agusta.
Proton rescued Agusta a year ago by pumping 70 million euros ($83 million) into the struggling firm, allowing it to pay off its debts, but the move into motorbikes surprised many investors. ($1=3.7790 ringgit)
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