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Parent company of Lotus acquired by Malaysian company DRB-Hicom
By admin | January 26, 2012
Khazanah Nasional Bhd which has a 43% stake with Proton, the mother company of Lotus, has sold its ownership of the car manufacturing firm to DRB-Hicom which is also Malaysian owned. The deal was sealed for $410 million.
The new owner of Proton is known for its investments in power generation, transportation, and automotive services. It belongs to the portfolio of companies owned by Syed Mokhtar Al-Bukhary, a Malaysian billionare.
The purchase which gives the new owner control over Proton follows a month after the approval of the bid of DRB-Hicom by former PM Mahathir Mohamad who is also the Proton founder.
DRB-Hicom is not at the helm of car factories which can produce around 350,000 vehicles annually. More significantly, DRB-HiCom also gains control of the sports car brand Lotus.
Fans of the British brand might be a bit wary with this buyout since it is not certain yet if the new owner will keep Lotus since it has not been bringing in money since its acquisition of Proton in 1996. Some experts are suggesting that the Lotus might be sold once Proton is controlled by a private company.
There are some parties though who have shown interest to the sports car brand. There is a loud buzz that Genii Capital wants to acquire Lotus after all the company is part owner of the grandprix team under the banner of Lotus Renault. Some Chinese companies have also expressed interest. Proton also did not bring in any profit since 2009.
Connected to this news, General Motors was also in negotiation with Proton last month for a possibility of a joint venture to be executed in Malaysia so it can tap the market of Southeast Asia. It is not yet clear if the latest purchase will have any effects on these talks.
Topics: Lotus, Proton | No Comments »