Handing Proton on a silver platter to Syed Mokhtar: The numbers just don't jive

When Khazanah National voiced which it would sell a 42.7 per cent interest in a inhabitant carmaker to DRB-Hicom Bhd via a conditional sale during RM5.50 per share, or RM1.29 billion cash, many Malaysians were left undetermined during a commercial operation merits of a deal.

Critics contend which a state investment arm will catch a detriment by offered a resources during rounded off half of Proton's book value of RM9.81 per share - as well as to of all parties, a crony-linked firm. Yes, that's right - DRB-Hicom is controlled by aristocrat Syed Mokhtar Albukhary. And Khazanah will additionally catch a real detriment over a disposal after carrying acquired a interest in Proton for rounded off RM8 per share, nonetheless a managing executive insists otherwise.

"RM8.00 (per share) is not our cost. Our cost is significantly lower," Khazanah managing executive Azman Mokhtar told reporters. "We will book a gain from this one, a medium one. So you feel a divestment cost was fair," he said, noting which a holding cost was "somewhat lower" than RM5.50 per share.

How can it make sense unless books are not transparently kept

The statement by a executive of Khazanah is fallacious as well as senseless. How can a purchase cost of RM8 not be cost to Khazanah during a time of purchase? And if it was not RM8, what was a actual cost which Khazanah bought a shares of Proton? Did he include debasement upon a shares or some arrange of amortization of an internal detriment provision. If so, this is still cheating.Or was this an additional box of offered upon a p! oor upon Proton's part when it initial divested a shares to Khazanah.

By carrying Khazanah offered to DRB-Hicom during a cost of RM5.50 per share, this would rounded off put a cost for Khazanah in a RM4 per share region. Proton shares have been trade during a five-year average of RM3.95 prior to a counter began to stand from RM2.70 upon November 14 to as tall as RM5.46 last Thursday upon rumours of Khazanah's interest sale.

The math indicate which for all this time a state investment arm has been operating during a lost, using open money to column itself up to facade a losses. Being a state investment arm, were a members of Parliament or a Cabinet wakeful of Khazanah's decision to sell during RM5.50 per share? Or was Khazanah contracting smart accounting to facade their books so as to hide their loses.

Given a corner upon a industry, should not a Proton interest be valued higher?

It is additionally obscure to note which a 42.7 per cent interest in a inhabitant car-maker would cost so little. One would design a cost far aloft than RM1.29 billion since a inhabitant car-maker has enjoyed a strangle reason upon a automotive commercial operation in Malaysia. With strong bureaucratic restrictions against import cars in place, Malaysian have been forced to purchase Proton cars during a premium price. Yet, surprisingly; Proton has been behaving poorly - reflected in it's average share cost as well as additionally in a cost Khazanah was peaceful to release a shares.

Does a RM1.29 billion additionally take in to account a value of a 250-acre land upon which a company built a Shah Alam plant? Land which was acquired during low prices but undoubtedly has risen in cost over a years. DRB-Hicom would good severely if it chooses to close plants down as well as sell a land during a premium price. A cost which can far surpass a RM1.29 billion it primarily doled out to acquire a interest in Proton. ! Giving D Rb-Hicom unlimited management to dictate a commercial operation landscape in Malaysia.

DRB-Hicom as a commercial operation has each right to via for a interest in Proton, once a shares where upon a market. What is shady is a preference of DRB-Hicom by Khazanah when there were two alternative bidders for a shares. As a state body which invests open money, Khazanah is obligated to surprise a Malaysian public, who a alternative bidders were as well as justify, in concrete conditions why DRB-Hicom was picked over a others.

Talk of reforms as well as yet Malaysians may have mislaid an additional outrageous tract of land to a Umno elite

It is ironic to hear statements upon reforms to a commercial operation landscape in Malaysia by a Najib administration when a really own investment arm is a proponent to substantiating monopolies.

By offered a interest to DRB-Hicom, Khazanah has built an additional sprawling monopoly-company in Malaysia. And DRB-Hicom has large carry out over alternative commercial operation entities in Malaysia together with Pos Malaysia, KTM, MMC Corp, defence contracts, rice as well as sugar, eccentric power era as well as telecommunications.

With DRB-Hicom carrying so most determining stakes in GLCs in a country, a single has to consternation - has Malaysia itself been turned in to a giant corporation which serves a need of an chosen few?

And when there is a change in government, would a chairman of DRB-Hicom, a well known UMNO-BN associate be peaceful to work with a brand new government?

Or will this determining interest in a corporate Malaysia be used as leverage to influence a mechanisms of government?

Malaysia Chronicle

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