Just to give one example, in the deal where Proton was to be acquired by DRB-Hicom back in 2012, they were required to reduce their stake in Bank Muamalat to an associate stake. Where is that deal now?
The below statement could be a plan by Geely, but I am not too surprised. For Geely to come out and mention this, there are many hiccups it seems in this deal. One must remember for Geely to come into Malaysia and get a deal done, it has to be FRIENDLY. This is a marriage, not a forced takeover. DRB has appeared many times to say that they will continue to have substantial stake in Proton - hence Geely will still need DRB as a partner.
Geely knows. Because they need to get the support to survive in a tough environment. But does DRB thinks and acts that way? Although, they will know as well.
It now goes back to who needs who more. DRB needs to get rid of Proton as it is bleeding more than RM1 billion a year and getting to a 'path of no return' i.e. oblivion. The only way is for it to survive is to do a deal or government to impose taxes which is even higher than the ones during Mahathir days.
With Proton, DRB will be in trouble although it is a separate subsidiary and can be left to rot. Does it want to do that?
If there is a deal which is fair to DRB, then possibly the group could be worth much more than today - but that is still far from the case.
Perhaps, it needs a "Lim Kang Hoo" to show the way...
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