23 April 2012

DRB-Hicom not disposing of Lotus group

DRB-Hicom Bhd has denied reports that it was going to dispose of Proton Holdings Bhd’s loss-making British sports car unit Lotus group.

In a statement released on Saturday, it said it had not reached a decision to sell Lotus, and did not know the source of speculation about selling it to China-based automobile group Youngman.

It is currently undertaking operations audit on Lotus, as part of its governance exercise.

“Contrary to reports that Lotus group would be put under administration, DRB-Hicom is still supporting Lotus both financially and management wise,” it said.

The company had also identified one of Proton’s senior management personnel to take up a position in Lotus.

Besides getting DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil appointed as the new executive chairman of Proton, filings with Bursa Malaysia on April 12 showed that the company had incorporated a £2 paid up capital company named Lotus Youngman Automotive Co Ltd.

Incorporated via Proton’s wholly-owned subsidiary Lotus Cars Ltd, Lotus Youngman is currently dormant, fuelling speculation of DRB-Hicom’s future plans for Proton and Lotus.

Source: www.thestar.com.my

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