STREAMLINING OF DRB-HICOM GROUP’S BUSINESSES IN MARKETING, SALES AND SERVICING OF PROTON MOTOR VEHICLES UNDER PROTON EDAR
Shah Alam, 1 November 2012 - As part of the DRB-HICOM Group (“Group”)’s strategy to streamline and align its business operations, DRB-HICOM Berhad (“DRB-HICOM”) today announced that it had completed the internal reorganisation exercise to rationalise and align the Group’s businesses and investments in the business of marketing of Proton motor vehicles, related spare parts and servicing of Proton vehicles (“Proton Business”) in Edaran Otomobil Nasional Berhad (“EON”) and Proton Edar Sdn Bhd (“PESB”), a wholly-owned subsidiary of Proton Holdings Berhad (“PROTON”) for a total cash consideration of RM400,800,000 (“Internal Reorganisation”).
The Internal Reorganisation among others involved the sale, transfer and assignment of the rights, title and interest in all the assets used in the Proton Business, all liabilities relating to the Proton Business and employees employed by EON for the Proton Business to PESB by EON, the acquisition of 100 per cent equity interest in EON Properties Sdn Bhd, a wholly-owned subsidiary of EON involved in property management by PESB; and the acquisition of 100 per cent equity interest in Automotive Conversion Engineering Sdn Bhd, a wholly-owned subsidiary of EON involved in the conversion and modification of motor vehicles and distribution of car accessories business, by PESB.
The internal reorganisation also involved the acquisition of 40 per cent equity interest in Proton Parts Centre Sdn Bhd (“PPCSB”) by Proton Marketing Sdn Bhd (“PMSB”) from EON and the acquisition of 5 per cent equity interest in PPCSB by PMSB from HICOM Holdings Berhad.
“Besides being one of the Group’s strategy to achieve greater operational efficiency, establish cost savings and enhance the Group’s future earnings, the Internal Reorganisation will also ensure the seamless implementation of strategic measures to achieve performance excellence in distribution, logistics and after sales service. The Group will also be able to leverage on specialised expertise with the consolidation of the workforce, allowing the Group to augment its service offerings for the automotive industry,” commented Dato’ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM.
“This reorganisation also means that we are delivering our promises of improvements in Proton,” he added.
DRB-HICOM has completed the acquisition of 100 per cent equity interest in Proton on 26 June 2012. Barely four months after the acquisition, DRB-HICOM is now mobilising improvement measures in Proton.