In December 2004, Proton advisor and former Prime Minister Mahathir and the then CEO of Proton Tengku Mahaleel decided to buy MV Agusta for RM367.6 million, which represents a 57.75% stake: thus a controlling stake of an Italian motorcycle manufacturer.
Mahathir had always wanted to proved to the Mat Sallehs that we Malaysian Boleh: we are a small developing country who has big heart and big minds; Malaysia may be a small country but it can conquer the capitalist world.
Tengku Mahaleel said at that time that the purchase, similar with its acquisition of Lotus Group International, gave the group the engineering capability to develop a full range of transport products from motorcycles and watercraft to light aircraft and military vehicles.
However, in July 2005 Tengku Mahaleel was ousted as the CEO of Proton.
Khazanah Nasional Bhd, the government investment agency, which owns 42.7% of Proton, through the Proton board, exercised their most important prerogative as an owner – the right to hire and fire; and out goes Tengku Mahaleel.
On November 30, 2005, Proton Chairman Mohammed Azlan Hashim announced the appointment of Perodua Auto Corp executive director Syed Zainal Abidin Syed Mohd Tahir, then 43, as its new managing director.
In December 2005, Proton Holdings announced that it has sold its 57.7% stake in MV Agusta SpA for one Euro (RM4.48) to Gevi SpA, an unknown, smallish investment holding company.
Gevi was to assume Agusta’s “restructured frozen debts”, which amounted to 106.9mil euro (RM478mil) which was the supposedly the reason why Proton decided to sell Agusta.
Mahaleel and Proton advisor Mahathir strongly criticized the Agusta sale and demanded information on why it went ahead, saying their credibility is at stake over the deal.
Proton Chairman Mohammed Azlan Hashim claimed that Agusta failed to deliver the synergies expected.
"It took five months to come to that point and we hired external consultants and lawyers and, looked at the possibility of restructuring Agusta but found out it was not a solution," said Azlan Hashim.
The group exco at that time, which was formed to take over the daily running of Proton after former CEO Tengku Mahaleel left, decided that a detailed review was needed and Credit Suisse First Boston (CSFB), along with an Italian law firm, were hired to advise Proton on how to move forward.
CSFB had then done its review of Agusta and what it found was “scary” as it found that the existing business model of Agusta was neither operationally nor financially sustainable.
Proton was told by its newly appointed adviser CSFB that for Agusta to continue surviving, it needed 40 million euros in the near term and up to 66 million euros until Agusta is able to support itself. “This is clearly beyond Proton's means,'' said Azlan.
Another problem the Proton board had to deal with was how to turn around Agusta operationally as the company had lost 120 million euros in the last six years.
Azlan said the only option then left for Proton to extricate itself from Agusta without spending more cash was to sell its stake in Agusta.
The Proton board then asked CSFB to find a buyer before the end of December 2005 so that Proton would not have to pay the 16mil euros debt payment and pour in further funds into Agusta.
Mahathir was extremely upset with Agusta's sales: "The sale of MV Agusta for one euro was based on poor understanding of the automotive industry," Tun Dr Mahathir Mohamad said.
“I cannot understand their decision to sell," Mahathir said.
"But if you know the automotive industry, you would know that motorcycle companies have a lot of engineering knowledge. That is why Honda has a 50cc motorcycle. Today you know that Honda is associated with some of the best cars in the world. So, it is possible for motorcycle companies to contribute towards the development of motor cars.”
Dr Mahathir, who is the advisor of Proton, said the decision had led to the Proton board losing the RM500 million paid for the stake in MV Agusta.
Prime Minister Abdullah Ahmad Badawi defended Proton's decision to sell Agusta at one Euro. "THE E1 (RM4.48) price tag on MV Agusta E Motors SpA was not a result of an error in management," Abdullah said.
Abdullah said that the sale to GEVI SpA from Italy was necessary to allow Proton Holdings Bhd to concentrate on its core business of car manufacture and sale.
The decision to sell Agusta to GEVI SpA was considered necessary because GEVI SpA had good financial standing, allowing it to take over Agusta together with Proton’s debts for the sum of E1. "The decision on the sale by the Proton management was the best choice in the interests of company operations and business," Abdullah said.
Gevi SpA subsequently sold part of its stakes to BMW. BMW Motorrad acquired Husqvarna Motorcycles, which is owned by Agusta, for 90 million euro (RM450 million).
Now we are informed that Harley Davidson Inc has agreed to purchase MV Agusta for US$109 million (RM352 million).
That's a total of RM802 million! Proton sold Agusta for RM4.48 and Gevi sold Agusta for RM802 million! That's truly Malaysia Boleh - the suckered!
Anyway, we must learn to appreciate the Proton board of directors; they had done a good and exceptional job!
And this is the questions Mahathir posed today in his blog:
"Do we need a royal commission to look into this or should the ACA investigate this matter particularly the role of Credit Suisse who was paid a huge consultancy fee to advise Proton's management who executed it.
"Or maybe we do not mind losing RM800 million because we have so much money."
(Source: chedet.com/)
Mahaleel said that the purchase of Agusta’s Husqvarna-brand and its factory by German luxury automobile giant BMW last month was proof that the ‘old’ Proton management had made the right choice.
Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were "no sales increase, no new products nor new patents".
“Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros... (the present Proton management) on the other hand, we sold the whole thing - three factories, three brands - for just one euro,” lamented Mahaleel today.
(Source: Malaysiakini)
Cheers to Khazanah under the leadership of Azman Mokhtar; cheers to Proton's Mohd Azlan Hashim and Syed Zainal; Cheers to Malaysia's PM Pak Lah; cheers to Malaysians.Tengku Mahaleel said at that time that the purchase, similar with its acquisition of Lotus Group International, gave the group the engineering capability to develop a full range of transport products from motorcycles and watercraft to light aircraft and military vehicles.
However, in July 2005 Tengku Mahaleel was ousted as the CEO of Proton.
Khazanah Nasional Bhd, the government investment agency, which owns 42.7% of Proton, through the Proton board, exercised their most important prerogative as an owner – the right to hire and fire; and out goes Tengku Mahaleel.
On November 30, 2005, Proton Chairman Mohammed Azlan Hashim announced the appointment of Perodua Auto Corp executive director Syed Zainal Abidin Syed Mohd Tahir, then 43, as its new managing director.
In December 2005, Proton Holdings announced that it has sold its 57.7% stake in MV Agusta SpA for one Euro (RM4.48) to Gevi SpA, an unknown, smallish investment holding company.
Gevi was to assume Agusta’s “restructured frozen debts”, which amounted to 106.9mil euro (RM478mil) which was the supposedly the reason why Proton decided to sell Agusta.
Mahaleel and Proton advisor Mahathir strongly criticized the Agusta sale and demanded information on why it went ahead, saying their credibility is at stake over the deal.
Proton Chairman Mohammed Azlan Hashim claimed that Agusta failed to deliver the synergies expected.
"It took five months to come to that point and we hired external consultants and lawyers and, looked at the possibility of restructuring Agusta but found out it was not a solution," said Azlan Hashim.
The group exco at that time, which was formed to take over the daily running of Proton after former CEO Tengku Mahaleel left, decided that a detailed review was needed and Credit Suisse First Boston (CSFB), along with an Italian law firm, were hired to advise Proton on how to move forward.
CSFB had then done its review of Agusta and what it found was “scary” as it found that the existing business model of Agusta was neither operationally nor financially sustainable.
Proton was told by its newly appointed adviser CSFB that for Agusta to continue surviving, it needed 40 million euros in the near term and up to 66 million euros until Agusta is able to support itself. “This is clearly beyond Proton's means,'' said Azlan.
Another problem the Proton board had to deal with was how to turn around Agusta operationally as the company had lost 120 million euros in the last six years.
Azlan said the only option then left for Proton to extricate itself from Agusta without spending more cash was to sell its stake in Agusta.
The Proton board then asked CSFB to find a buyer before the end of December 2005 so that Proton would not have to pay the 16mil euros debt payment and pour in further funds into Agusta.
Mahathir was extremely upset with Agusta's sales: "The sale of MV Agusta for one euro was based on poor understanding of the automotive industry," Tun Dr Mahathir Mohamad said.
“I cannot understand their decision to sell," Mahathir said.
"But if you know the automotive industry, you would know that motorcycle companies have a lot of engineering knowledge. That is why Honda has a 50cc motorcycle. Today you know that Honda is associated with some of the best cars in the world. So, it is possible for motorcycle companies to contribute towards the development of motor cars.”
Dr Mahathir, who is the advisor of Proton, said the decision had led to the Proton board losing the RM500 million paid for the stake in MV Agusta.
Prime Minister Abdullah Ahmad Badawi defended Proton's decision to sell Agusta at one Euro. "THE E1 (RM4.48) price tag on MV Agusta E Motors SpA was not a result of an error in management," Abdullah said.
Abdullah said that the sale to GEVI SpA from Italy was necessary to allow Proton Holdings Bhd to concentrate on its core business of car manufacture and sale.
The decision to sell Agusta to GEVI SpA was considered necessary because GEVI SpA had good financial standing, allowing it to take over Agusta together with Proton’s debts for the sum of E1. "The decision on the sale by the Proton management was the best choice in the interests of company operations and business," Abdullah said.
Gevi SpA subsequently sold part of its stakes to BMW. BMW Motorrad acquired Husqvarna Motorcycles, which is owned by Agusta, for 90 million euro (RM450 million).
Now we are informed that Harley Davidson Inc has agreed to purchase MV Agusta for US$109 million (RM352 million).
That's a total of RM802 million! Proton sold Agusta for RM4.48 and Gevi sold Agusta for RM802 million! That's truly Malaysia Boleh - the suckered!
Anyway, we must learn to appreciate the Proton board of directors; they had done a good and exceptional job!
And this is the questions Mahathir posed today in his blog:
"Do we need a royal commission to look into this or should the ACA investigate this matter particularly the role of Credit Suisse who was paid a huge consultancy fee to advise Proton's management who executed it.
"Or maybe we do not mind losing RM800 million because we have so much money."
(Source: chedet.com/)
Mahaleel said that the purchase of Agusta’s Husqvarna-brand and its factory by German luxury automobile giant BMW last month was proof that the ‘old’ Proton management had made the right choice.
Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were "no sales increase, no new products nor new patents".
“Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros... (the present Proton management) on the other hand, we sold the whole thing - three factories, three brands - for just one euro,” lamented Mahaleel today.
(Source: Malaysiakini)
We are the world, we are the people, we are a nation of intelligent CEOs!
Further References:
TheStar: Proton chief tells all in controversial Agusta sales
New MD for loss-making Proton
NST: PM: Sale of Agusta the best choice
Malaysiakini: PM: Why we sold MV Agusta for RM5
Malaysiakini: Proton lifts the lid on MV Agusta purchase
Malaysiakini: Agusta sale: 'Proton's loss, BMW's gain'
BMW Motorrad Acquires Husqvarna Motorcycles
www.mvagusta.net
How about Lotus for £1
TheStar: Proton divest impaired asset
23 comments:
"
Harley-Davidson Reportedly In Advanced Talks To Acquire MV Agusta
06/5/2008
Harley-Davidson Inc. is in advanced talks to acquire MV Agusta, Messaggero reported, without citing any sources. According to Messaggero, the transaction would see Harley-Davidson buy out most of the debt of MV Agusta, currently at around �200 million - �130 million held by banks and �70 million held by suppliers. The operation would envision a write off of part of the debt, Messaggero said. Harley-Davidson wants to write off about 35% of the debt but the banks and suppliers want that amount reduced to at least 30%."
Mav, there is baggage involved. USD 200 million in debt.
link here
SO, THESE ARE THE MOST CANGGIH MALAY BUSINESS BRAIN?
PORDAH!!!
THINK THE GORENG PISANG & BURGER SELLER ARE BETTER THAN THESE BUNCH OF MONKEYS.
^^^HAMIDBOTAK
Yeah, all "powderful" CEO from Bolehland.
Can all the CEO answer why PROTON FAILED to deliver Wira model with a good power windows? Even better, I heard Persona power windows FAILED.
Let me see. Finland, half of the country are in darkness for few month, covered by snow, they produce the world no.1 mobile phone brand. And minority rights are well respected in Finland. Linus Torvald make Linux that based on American Richard Stallman free software spirit that compete with Microsoft windows.
Helsinki don't need top world building to prove to anyone. Finland never falls out of 3rd place as world cleanest country in world corruption index. etc, etc.
Why a snowy cold country achieve all this but Malaysia failed with so many "Great CEO". Interesting indeed.
The issues brought up by Jefus need to be incorporated into the big picture surrounding this controversy.
Can Che Det or Tengku Mahaleel clarify how the "old" Proton was going to clean up the debt ? My limited understanding is that this debt was already there when the purchase was made.
Oh, btw, the Finnish also so obsessed with "costly universities. Unlike Bolehland, they build TOO many university, 20 universities and 30 polytechnics. For a 5 millions population country.
On the other hand, unlike Malaysia that spend 10% of GDP on defense, Finland only spend 2 billion euro or 1.4–1.6% on defense.
And oh shit, Finland biggest cruiser builder never failed to deliver. OTH, Malaysia defense minister, under Mr C4, failed to get a simple gunboat build despite many years and few billions spends.
And when nokia turn from paper mills to electronic and later to mobile phone, Finland government never impose tax on foreign mobile phone to protect it.
So how many world big brand are own by government link company? Malaysia are indeed boleh.
moo_t,
we also have lots of uni mah. but dunno wat kind of std lah. even the most glamourous of them all fell from ranking like nobody's business.
hm... i'm wondering wat other dirty details were hidden behind Tony Fernandes' RM1 purchase of ex-AirAsia leh?
Wow... this is interesting.... Logically, selling a million dollar company at EURO 1 is highly "confusing"... We know how the western economic works...
Maybe we really need to set-up a commission to at least clear up all these confusions....
bastArdisded, buggerised, whatever....Che det asking for RC or ACA will not happen.
Lived long enough in Malaysia..nothing will happen. Proton will continue to lose money, as the gravy train in long in Proton.
BUNG MUKHTAR, HERE'S YOUR CHANCE TO SHOW YOUR FLAIR. YOU CAN GIVE YOUR SPECIAL 3 'POOUCH' EACH TO THE BOARD OF DIRECTORS OF PROTON & KHAZANAH INCLUDING AAB.
TOPAZ
sorry ..typo
..as the gravy trains IS long...
Jeyklls and Hydes in Malaysia. Are you? (Updated 14 July 2008)
Malaysians in dilemma? So many events and news both real and unreal. Don’t know who to believe? Bombarded with too much spins. These are the quotes, we now hear.
“Give up”, “Fed up”, “Wait and See”, “Lost interest”, “Headache”, “Cannot believe anyone”, “Who to believe ah?”, “Niamah”, “Pening kepala”, “Pening otak”, “Sudah lah”, “Pi mampus”, “Insyallah (God Willing)” or raise your palm and fist and put them together on National tv or www.Youtube.com or www.malaysiakini.com or www.Malaysia-today.net or other blogs.
Why? Because it depends on what you want to perceive and your bias toward your own race, color, religion, party, groups, interests, superiority or plain dumbness.
That makes you something of a Jeykll and Hyde if you can’t differentiate between facts and fictions, good and evil, right and wrong, true or false. Too many Malaysians can’t decide now whether to become Jeykll or whether to become Hyde or when to become Jeykll or when to become Hyde.
Think hard and search your conscience from deep within and “Viola” you can differenciate between Night from Day. Throw out bias towards race, creed, superiority, affiliations, religion and beliefs, greed, power, cronyism etc and then see whether some of the things happening around is right or wrong , true or false, evil or good, facts or fiction.
1. Altantuya was killed and blown to bits. (Fact or Fiction).
2. Sodomy is as evil as murder. (True or False).
3. Anyone accused are innocent until proven guilty. (True or False).
4. Statutory Declarations and Police reports can be made to fool people. (True/False).
5. Anyman or woman will swear on his religion or beliefs to save his own skin. (True/False).
6. Race superiority is needed to rule Malaysians. (Fact or Fiction).
7. Religious superiority is needed to rule Malaysians. (Fact or Fiction).
8. All poor people need to be helped by Government. (True or False).
9. Corruption is a fact of life and should be tolerated. (Fact or Fiction).
10. ISA is needed because prevention is better than cure. (Fact or Fiction).
11. Free education is a right for all Malaysian children. (True or False).
12. Free healthcare is a right of all Malaysians. (True/False).
13. Free speech is a right of all Malaysians. (True/False).
14. Freedom of religions and beliefs is a right of all Malaysians. (True/False).
15. Liberty is a right of all Malaysians. (True/False).
16. All Malaysians and the world can be converted to a single culture, religion, race in future. (Fact or Fiction).
17. The next PM of Malaysia will follow R.A.H.M.A.N theory. (Fact or Fiction).
18. All Malaysian Malays are poor and lazy. (Fact or Fiction).
19. All Malaysian Chinese are rich and gamblers. (Fact or Fiction).
20. All Malaysian Indians are drinkers and liars. (Fact or Fiction).
21. All East Malaysians are inferior to West Malaysians. (Fact or Fiction).
22. Only Barisan Nasional (BN) can govern Malaysia. (Fact or Fiction).
23. Only UMNO can take care of Malaysian Malay’s and other Bumiputeras interest. (Fact or Fiction).
24. Only MCA can take care of Malaysian Chinese’s interest. (Fact or Fiction).
25. Only MIC can take care of Malaysian Indian’s interest. (Fact or Fiction).
26. Only Gerakan can take care of Malaysian’s interest. (Fact or Fiction).
27. Only PKR can take care of Malaysian’s interest. (Fact or Fiction).
28. Only PAS can take care of Moslem’s interest. (Fact or Fiction).
29. Only Hindraf can take care of Hindu’s interest. (Fact or Fiction).
30. Only PBDS can take care of Sarawakian’s Bumi interest. (Fact or Fiction).
31. Only UMNO Sabah can take care of Sabahan’s Bumi interest. (Fact or Fiction).
32. All Jews are intelligent and corrupted. (True/False).
33. All Africans are corrupted and murderers. (True or False).
34. All Westerners are corrupted and evil. (True or False).
35. All Chinese are communists. (True or False).
36. All Indians are Hindus. (True or False).
37. All Malays are Moslems. (True or False).
To be continued……
From: Patek1472.wordpress.com
This is what "Chan For Da Gip" means!!
While the admnistration has been very effective in diverting attention and the Opposition is still in shambles and busy focusing to sieze power for a new PM, the "intelligence" vultures having access and control of the country resources are having a field-day filling up their war chest and coffers. Acqusition of heavily inflated assets or disposal of assets with highly supressed valuation for the benefits of the intelligence elites are the standard operating procedures in their modus operandi.
Calls for better transparency, accountability are more in form rather than in substance. Unfortunately in the absence of strong critical, susbtantive and effective demand on these major financial scandals from the Opposition, the situation is conducive for the proliferaion of the cannabalisation of nation wealth.
Criticism eventhough constructive, from people with past baggages such as Mahathir are ignored even by the Pakatan who aspire to champion governance, transparency and accountability are ignored. This phenomenon has gving comfort to the "intelligence" who make full advantage in maximising their hauls.
What to do, we in a country ruled by laws of perception and effective diversion strategy.
Wake me up before you go go!
4th floors boys and badawi
can I buy lotus for RM10.00 please.
I undertake to assume all debts of Lotus. My backers are influential and have the resources. Written assurance will be provided. And i promised to give my undivided loyalty and support to anyone who agrees to sell Lotus to me for RM10.00
thanking you al in advance, 4th floor boys and Badawi.
WTF
"Why a snowy cold country achieve all this but Malaysia failed with so many "Great CEO". Interesting indeed."
Simply put - these CEOs are majority "the best of the worst" bolihland management products, with a very VERY few exception like the current MAS CEO.
Spurious achievements based on know-who & skin colour, coupled with twisted academic manipulations for Uni entrances & scholarships - there u have the bolihland's GLC CEOs!
we got the world's best CEO that money can buy.. hmm. who said this?
factly.. it really means the most corrupted CEO that will do anything for money. with the right price, you can get the CEO to do anything.
you don't find this in other major companies. Yahoo rejected Microsoft bids, as it didn't profit the shareholder, when if he makes millions.
Our best CEO would have sold the company out for a profit into his bank account.
we do not have top notch CEO? think again,.....
have u heard of Dr Cheong Choong Kong? No?
"Dr. Cheong Choong Kong (born 9 June 1941) is the Malaysian-born former Chief Executive Officer of Singapore Airlines. After the collision of Singapore Airlines Flight 006 during take-off, he appeared as the public face of the airline. Currently, he is chairman of the Oversea-Chinese Banking Corporation"
and why is he there?
"He began his career as a mathematics lecturer in the University of Malaya (1968), eventually becoming associate professor and serving as head of the department.
He left academics in 1974 to work with Singapore Airlines. He spent 29 years at Singapore Airlines; he eventually became the company's CEO.
In 1998, Fortune named him Asian Businessman of the Year, noting that SIA had an "unbroken 27-year record of profitability through turbulent economic times."
He was first appointed to the board of OCBC on 1 July 1999. He served as vice chairman from 26 March 2002 to 30 June 2003. On 1 July 2003, he was elected chairman of the board.
He is now a Director of several companies, including Singapore Press Holdings Ltd, Great Eastern Holdings Ltd, Great Eastern Life Assurance Company Ltd and Overseas Assurance Corporation Ltd."
no need to thread between the two facts. if u don't know why then you don't need to know.
link here
Jefus,
I agree there's a baggage involved. The question is: why would Harley-Davidson wants to buy a baggage if they would not believed that they could be benefiting it commercially and would derived values?
Hamidbotak,
You are angry? Let's take it rationally.
Moo_t,
You had a good analogy but we are in two different political system and different in value system too.
Purple Haze,
I agree that the debt was there when we bought Agusta; but the decision to buy must have taken into consideration of the debt exisiting which is similar to Harley-Davidson's decision.
CK,
You're are linking Tony into this? I think in Tony's case, the existing airline was in deep shit - it was insolvent and on the verge of winding up.
Letting the time pass me by,
Hahaha, you are Mahathir's supporter.
Artchan,
Proton is making money now; but we don't know how long they would last.
Topaz,
I hope Bung Mokhtar would not disturb this as he has little to offer.
Nostradamus,
Your Jeyklls and Hydes is long.
Wham,
I agree with your points.
WTF,
You are naughty.
Jefus,
Thanks for the info on Dr Cheong; but I think Dr Cheong had preferred to be in a place where he can exploit his own talents to the hilt.
and malaysia was never meant for some outstanding individual like Dr. Cheong to give his best.
it's just doesn't fall in place policies like NEP.
Maverick
It is now very clear that the country is run by experienced matured Prime Monkey called Pak Lah.
The Khazanah instead is run by Master Babboon, Azman Mokhtar whereas Proton intelligent CEO and Chairman are Khinzirs of Modern Day.
Funny that these living carcasses remain living creatures yet to be bombed with C4, by Mr Hippo.
WTF; are Malaysian comprises of dumb and daft people?
When MV Augusta's sale for 1 Euro was broadcasted, I was shocked to the core - thinking of the millions the country has lost.
Now, it shocked me to the core of my core (if there's such a depth)to hear that it can be re-sold for more then 1 Euro !!
I think we must be laughing stock of the world !!
P.S. Just think of the $$ which could have benefited the rakyats.
Dumb-Bomber-Sei-Four,
I would call them such names; but count ourselves lucky that they are.
Gan,
You probably did not know who engaged CSFB and how they kautim the whole sales.
Good and sound judgement have never been the hallmarks of Pak Lah's government.
Don't be silly Hailey. You made a huge impact with your text, greater than you probably realize. And About the series ...
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