Saturday, August 14, 2010

Proton/Perodua to provide feedback on merger discussions to the govt

PETALING JAYA: Valuable feedback from discussions held between PROTON HOLDINGS BHD [] and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) on a possible merger will be forwarded to the government.

The government is expected to deliberate on the outcome before making recommendations to the Cabinet by year-end. "The discussions are already underway. We have engaged and surely from time to time, give feedback and information to the government.

"This will help the government form opinions and make recommendations to the Cabinet," said Proton's managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir.

He was speaking to reporters here on Friday, Aug 13 after the exchange of documents between Proton and Sirim Bhd to facilitate the production of a reality television programme entitled, "Idea: Malaysian Inventors' Challenge", here.

The programme, supported by the Ministry of Science, TECHNOLOGY [] and Innovation will be aired on TV3 on Sept 25 to support and encourage creativity and innovation among Malaysians.

The document exchange was witnessed by Fadillah Yusof, the Deputy Minister of Science, Technology and Innovation (Mosti).

"Both companies have a strong desire to explore collaboration and consolidation. But, let's not make any judgment today. Let's wait a few months before the government makes a decision," said Syed Zainal.

He added it was important for a company to explore the best synergies whether it is a consolidation or merger, adding that a consolidation in the banking industry had resulted in great efficiency.

"I believe there is an opportunity for us to cooperate or consolidate. The form of consolidation, I am not here to make any assumptions. Any consolidation to happen must be meaningful to both companies," he said.

On Proton's performance, Syed Zainal said sales in the first-half of this year increased between eight and nine per cent, from the same period last year, thanks to aggressive marketing activities.

He added that Malaysians were more satisfied and confident with Proton's products and the company would continue with activities to boost domestic sales and exports.

Syed Zainal said Proton aimed to sell 170,000 units of the Saga, Persona and Exora models in the domestic market this year.

For the current year ending March 2011, he said Proton aimed to export more than 220,000 units to Asean, China, India and Middle East.

"In the long-term, we cannot rely on the domestic market to sustain ourselves because the volume is small. The export revenue will play a much more important role in the next five years," he said. ' Bernama


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