Tuesday, March 13, 2012

Future of Lotus uncertain after takeover of Proton

DRB-Hicom Bhd's recent takeover of Malaysian car maker, Proton Holdings Bhd. has resulted in an uncertain future for Lotus Group International Ltd.

Khazanah Nasional Bhd. which is the Malaysian Government’s investment arm, sold its 42.7% stake in Proton to DRB-Hicom for RM1.29 billion ($414 million). An additional 7.7 percent stake was bought in the open market which gave DRB-Hicom a majority stake in the company.

Proton bought Lotus Group International Ltd in 1996 but the subsidiary has yet to make a profit. News reports indicate that sales have collapsed in the UK.

The rumours that the new owners of Proton might sale off the company have hit morale at the British HQ though Dato’ Sri Syed Mokhtar Al-Bukhary, head of DRB-Hicom, has dismissed these rumours. Read the full report here.

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