comment on AUGUSTA Sale

Its interesting to see comments of Tun Dr Mahathir and Tunku Mahaleel in the STAR,

The debts of M.V. Agusta are frozen in any case and it need not be paid immediately. Has the amount provided been paid so as to reduce M.V. Agusta’s debts or is it still with Proton when M.V. Agusta was sold at one euro?There are in fact many questions which have to be answered regarding the sale at one euro of an entity that was bought at 70 million euros.
1.Who offered to sell or who offered to buy at one euro?
2.Were there other bidders?
3.Was there an attempt to get the buyer to pay a higher price?
4.Was there an announcement that M.V. Agusta was up for sale? If not, did Proton approach only one bidder? If other
bidders were offered, did they reject?
5.Who in fact made the decision to sell?
6.Can Proton explain how selling an entity bought at 70 million euros for one euro would not cause Proton to lose money as is claimed?

Gevi S.p.A. is not a household name in the automotive industry. Is it a motorcycle company, confident that it can turn around M.V. Agusta, something that the sale by Proton implies that Proton has no capacity or ability to turn it around? Not having to pay 70 million euros will be an advantage for Gevi. We want to know the correct answers. The public too may want to know as Proton is a national project.

DR MAHATHIR BIN MOHAMAD and
TENGKU MAHALEEL TENGKU ARIFF,
Kuala Lumpur.

To me its a fair request to the national car company. Its not long ago on 22nd Sept 2005 Augusta announced record sales in Italy and Europe. The best performances came from Germany (+23.49%), Spain (+55. 45), France (+15.22%) and Belgium (+18.54%) and the figures from Australia showing double the usual sales were boosted by a new Husqvarna sales network that soared from the 299 recorded in 2004 to the current 596.

It proves that things are looking good and this should add value to the negotiation with the new buyer. But at 1 EURO, its rediculous. If we relate that to Freddie Fernandez buying Air Asia for RM 1 (plus few hundred million in debt), its no comparison. Air Asia has 1 leased aircraft and lots of debt while Augusta has landed property, factories (Schiranna (VA) factory) , offices, equipment, know how and goodwill in 3 brands(Augusta, Husqvarna ,Cagiva ), history ( 75 World Titles-38 riders championships and 37 constructors championships) and much more....