Sunday, November 12, 2006

Fools pay 51% but have no control


Which international organization will pay a billion dollar to buy up 51% of a company in Malaysia but with a condition that they will not have equitable control?

Deputy Finance Minister Datuk Dr Awang Adek Hussin said Proton Holdings Bhd will remain in the Government’s control even if 51% of Proton’s manufacturing division is sold to a strategic foreign partner.

Second Finance Minister Tan Sri Nor Mohamed Yakcop had announced on Friday that the Government was in talks with Volkswagen AG (VW) on the possibility of teaming up with Proton Holdings Bhd.

I am not sure Volkswagen is an international fool. But so far, I had not seen a reputable international fool that will accept such terms and conditions as imposed.

Maybe, there is going to be one for the guinese book of record.

11 comments:

mob1900 said...

How could one remain in Gov posession when a company owns 51% of a company?

If it could be done, there would be no Bruahaha over the Pantai Grp shares issue.

Nuts.
Caught with their pants down by Mave!

bayi said...

AAB was either badly advised or he has highly incompetent spin masters.

Maverick SM said...

Bayi, I don't think he was badly advised. The spin master knew he was a fool and they just treat him at such.

Dragon City said...

Dr Awang Adek said that many parties had shown interest in a strategic partnership with Proton ..hmm.. ^_* ???

i dun think so...

Kenny Ng said...

Isn't it Volkswagen pull out already? What to talk somemore?

bayi said...

I believe "strategic" to foreign partners means they can make money from us.

Potential partners can say they pull out but where there is a good deal they never really pull out. Pakai teknik tarik harga only.

Maverick SM said...

Bayi, I do not agree. Strategic in Malaysian point of view case is the issue of control, the vendors programme, and the engineering expertise.

To Volkswagen, it is also strategic to them: a new market to drive their products and engineering expertise, a place to dump their unwanted chasis, and the fact that the purchase may be considered cheap buy for speculative investment.

O2Deprivation said...

Very soon our government has to swallow their own words, if foreign partner is not taking up the "offer". They will have to beg god to save "Proton". We have no engineering experts, we have no competitive vendors (considering most of the contracts were not given to the best eligible company) and we got no brains.

moo_t said...

To VW, everything is business 101, cost control. Without the control stake, they even fire the shoddy quality supplier, sacked overpaid executive, etc, and not to forgot annually, thousands millions of $$$$$$$ is given by Proton to funds you-know-which-political-parties.

warrior2 said...

proton holdings bhd consists of many divisions including the manufacturing division. so if 51% of the manufacturing arm is sold...let me see...hmmm...hmmm..

ah..ah....

Maverick SM said...

Warrior2, the manufacturing division is an entity by itself and it's the core of the whole business unlike Proton Edar, Lotus Eng or any other subsidiary. Proton group consist of the manufacturing, the main core business and the main-framework; the rest are subsidiaries. If the core business is controlled by foreigners, then the whole business will be subjected to VW's control.