Proton Sale Prompts Chairman's Resignation

Proton Chairman and Director Nadzmi Salleh resigns following an unsuccessful attempt to buy the Malaysian auto maker.

In a filing with Bursa Malaysia, the Malaysian stock exchange, Proton says Nadzmi’s resignation is among the stipulations in the sales-and-purchase agreement between government investment company Khazanah Nasional and industrial conglomerate DRB-Hicom.

DRB-Hicom has completed its acquisition of the 42.7% of Proton previously held by Khazanah. This raises DRB-Hicom’s holdings in Proton to about 50.0%, and it now is making an unconditional offer for all remaining shares.

Nadzmi, 57, was a Khazanah nominee and became Proton chairman Jan. 1, 2009. He had served as the auto maker’s managing director from 1993 to 1996.

DRB-Hicom has named Managing Director Khamil Jamil as Proton’s executive chairman and executive director.

The Star newspaper says the appointment is widely seen as beneficial to Proton, as Khamil is the person best-suited to return the auto maker to its glory days.

The newspaper also reports a number of internal changes have taken place at DRB-Hicom since its acquisition of Proton.

DRB-Hicom Defense Technologies CEO Harith Abdullah has been named head of the group's automotive and defense divisions. He succeeds Hamdan Hassan, group director-automotive, who has resigned from DRB-Hicom, unnamed sources tell the newspaper.