Shareholders advised to take offer
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Affin Investment Bank has advised Proton shareholders to accept DRB-Hicom Bhd's M$5.50 per share offer for the shares not already owned by DRB-Hicom.
In a shareholders’ circular released on Friday, Affin Investment said that it would be beneficial for shareholders to accept the offer as the Proton group might be faced with external challenges in the future. The bank says that Proton group’s business may face challenging times ahead and that its future financial performance hinges on the successfull implementation of its five-year business plan along with the turnaround business plan for the Lotus group.
According to Affin Investment’s valuations, the offer price for Proton is fair.
“DRB-Hicom has forged strategic partnerships with reputable and respected global brands such as Mercedes-Benz, Honda, Suzuki, Mitsubishi, Isuzu, Mahindra, Audi and Volkswagen,” it said. “This augurs well for DRB-Hicom to assist Proton to strengthen its operations, manufacturing system and distribution network in the regional market.”
