Proton Sell MV Agusta for euro 1

December 27th, 2005 at 01:57pm tiger Entry Filed under: Auto News, Malaysia

mv agustsa align=Malaysia’s national carmaker Proton Holdings Bhd. said Tuesday it is selling its controlling stake in debt-ridden Italian motorcycle manufacturer MV Agusta SPA for a nominal euro1 (US$1.19) in cash.

Proton said it paid euro70 million (US$59.32 million) for its 57.8 percent stake in Agusta in 2004, adding that the sale of the stake was “consistent with Proton’s direction of divesting noncore assets.”

Proton blamed provisions for Agusta’s debts with banks and suppliers as one of the reasons it suffered a net loss of 154.3 million ringgit (US$40.8 million; euro34.8 million) in the three months ended Sept. 30.

The carmaker has come under pressure to return to profitability after its domestic market share dwindled to around 30 percent in June from 44 percent last year, as the government is slowly lifting protective tariffs on foreign-made cars due to a regional free trade agreement. -

Trading of Proton shares was suspended on Dec 27.
Let Calculate The Loss
Buying price= euro 70million
Selling price= euro 1.19
Total loss= Selling Price-Buying Price= 70Euro million-1=69.999 Euro

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Category : Auto News, Malaysia

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