Published: Wednesday January 9, 2013 MYT 3:13:00 PM
DRB-Hicom plans Asian Car, to be hub for Volkswagen
KUALA LUMPUR: DRB-Hicom Bhd is in the midst of "hatching" an ambitious plan for a project to be known as "Asian Car" which will see Malaysia becoming a hub for the production of Volkswagen (VW) vehicles.
VW is Europe's biggest vehicle manufacturer.
In order for it to happen, DRB-Hicom's owner, Tan Sri Syed Mokhtar Al-Bukhary is working on a plan to list the distribution arm of DRB-Hicom Bhd.
The plan is to list the merged Proton Edar and EON Bhd, both are distributors of Proton cars.
As part of the plan, DRB-Hicom itself might be delisted. "It is one of the options on the table," a source familiar with the proposed plan told Bernama.
Under this option, DRB-Hicom's automotive manufacturing arm and defence unit will be held privately by one of the companies owned by the tycoon.
DRB-Hicom's existing shareholders will be able to convert some of their shares into the new listed company.
They will also be given some cash, between 50 sen and RM1 per share, the sources said.
The automotive manufacturing arm, meanwhile, will be relisted in another form, later on, under the DRB-VW joint-venture.
DRB-Hicom and VW had in August 2010 signed a memorandum of understanding (MoU) to collaborate on the assembly and manufacturing of the latter's vehicles in Malaysia. - Bernama