DRB-Hicom, Geely to complete transaction “very soon”

PETALING JAYA: DRB-Hicom Bhd and Zhejiang Geely Holding Group are intensifying efforts to finalise the detailed business plan for Proton Group and are expected to complete the corporate transaction “very soon”.

DRB-Hicom said in a statement today that the detailed business plan is vital towards producing a solid roadmap for Proton Group for the years ahead, and is one of the key items to be concluded as part of the completion exercise.

“The business plan will incorporate strategies for both companies to develop new vehicles together for the global market,” it said.

DRB-Hicom and Geely hold 50.1% and 49.9% stakes in Proton Group respectively. The Proton Group comprises three key entities namely Proton Holdings Bhd (PHB), Perusahaan Otomobil Nasional Sdn Bhd (PONSB) and Proton Edar Sdn Bhd.

PHB is the holding company while PONSB is a 100% subsidiary of PHB and is the main production, operations, manufacturing and marketing company. Proton Edar, a 100% subsidiary of PHB, is the main distribution outfit of the group.

For all three entities, DRB-Hicom has one additional seat at the board of directors level, matching the 50.1% that DRB-Hicom holds.

“Upon the completion of the transaction soon, an announcement shall be made in due course in relation to the composition of the board of directors of these companies. Each of the companies shall have board representations from both DRB-Hicom and Geely,” it said.

Apart from future appointments of the board members, DRB-Hicom’s group managing director Datuk Seri Syed Faisal Albar will continue with his key role as the overall chairman of PHB.

Syed Faisal’s role, among others, is to ensure that the tie-up will achieve its benefits and ultimately, provide a return on investment to the shareholders, namely DRB-Hicom and Geely.

Meanwhile, Datuk Ahmad Fuaad Kenali will relinquish his post as CEO of PHB effective Sept 30, 2017. Fuaad was appointed as CEO of PHB on April 1, 2016, after assuming the position of COO/senior group director of DRB-Hicom in 2013.

Upon completion of the corporate transaction, Geely will nominate a suitable candidate as the CEO of Proton Group’s PONSB.

“PONSB is the bulk of the operations of Proton Group, and thus it is critical that we have the right person for the job. An announcement shall be made in due course,” said Syed Faisal.

Meanwhile, Datuk Radzaif Mohamed will remain as a key officer at Proton Group and will continue in his role as deputy CEO at PONSB. Abdul Rashid Musa, who was named CEO of Proton Edar in February 2017, will also continue in his role.

“With Radzaif and Rashid remaining in their positions, this ensures continuity within the Proton Group. It will also ease the transition of the future CEO of PONSB and this can only be good for the venture,” added Syed Faisal.