28 April 2012

KPMG appointment towards selling Lotus was put on hold after DRB-Hicom completed the acquisition of Proton, says Group Managing Director Datuk Seri Mohd Khamil Jamil

(DRBHCOM closing stock price today (27.4.2012) was RM 2.54)

DRB-Hicom Bhd has reiterated that it is not selling loss-making British sports car subsidiary, Lotus, following news reports that audit firm KPMG has been appointed to evaluate the company with a view to sell.

Group Managing Director Datuk Seri Mohd Khamil Jamil said KPMG's appointment was made before DRB-Hicom acquired the national car manufacturer in January this year.

This means it was not DRB-Hicom, but another party which appointed KPMG, to evaluate Lotus for a subsequent sale.

"We put on hold any further effort by KPMG towards selling Lotus when we completed the acquisition of Proton," he told Bernama in response to media reports on KPMG's appointment and the sale of Lotus.

Khamil Jamil said there were many decisions made before DRB-Hicom acquired Proton and the appointment of KPMG was one of them.

Asked if the practice of undertaking an operational review was common in any acquisition, especially with DRB-Hicom expected to spend approximately RM3.02 billion to acquire Proton, he said: "The operations audit on Lotus is still ongoing in accordance with our governance process.

"And I reiterate that we have not decided on selling Lotus."

DRB-Hicom acquired a 42.7 per cent stake in Proton from Khazanah Nasional Bhd and now owns 98.6 per cent of it.

Source: www.bernama.com


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