DAP: Explain aborted VW deal
Sunday January 15, 2006
The Star

PETALING JAYA: The DAP has called on Proton Holdings Bhd to explain the aborted deal by Volkswagen AG (VW) and for selling its Italian motorcycle unit MV Augusta at ?1 (RM4.48). 

It said in a statement yesterday that Proton owed an answer to the company’s shareholders, who are mostly Malaysians. 

“As Khazanah Malaysia holds about 38% stake in Proton and Malaysians are the majority shareholders, public interest requires an answer,” the party said in a press statement.  

The party also called on the Prime Minister to direct Proton to respond to the questions. 

In a statement to Bursa, Proton said that VW had requested for more time to decide on the possibility of collaboration in alternate forms and that a mid-January 2006 timeline for their response was agreed by both parties. 

In December, Proton announced that it was selling its 57.75% stake in MV Augusta to an Italian company GEVI SpA for ?1 a year after injecting ?70mil into the ailing company.  

Under a share purchase and investment agreement, GEVI will assume the restructured frozen debts amounting to ?106.94mil and working capital requirement of ?32.5mil.  

DAP said Proton had an obligation to answer queries on the aborted deal by VW and why RM510mil investment in Augusta (RM315mil purchase price and the remainder financial assistance) became zero in less than a year. 

“If the Proton management continues to be haunted more by the need to salvage national pride and save face rather than seriously address the commercial and financial issues besetting Proton, there is no hope to stop Proton from becoming continuous drain of resources to our national economy,” it said.  

Source: http://thestar.com.my/news/story.asp?file=/2006/1/15/nation/13119250&sec=nation