This type of competition however is not for Syed Mokhtar. He is already having his hands full with other businesses. Today, the news appeared that Syed Mokhtar is pulling Proton private. Why? Just look at its land...
|Major portion of land held Proton - does not include others in UK, US and other states in Malaysia|
A quick calculation - 7,142,890 sq ft in Petaling and Glenmarie alone. How much does freehold land in Glenmarie fetch? RM200 per sq ft easily. It will be worth more if the single piece is very large - err say 163 acres where you can use for multi development? What do you think it is worth then? RM1.4 to RM1.6 billion.
What about the 55 million sq ft land in Tanjung Malim? RM10 per sq ft for a industrial freehold land is reasonable for that place. That would come to RM550 million.
Hence, we now know that the total value for Proton's land in Selangor and Tanjung Malim alone could be worth up to RM2 billion. This does not include the others in other states in Malaysia (for Sales and Service), UK (Norwich, Bristol) and US.
What is the value of land in the books? RM215 million - just. Hence it is way under-declared.
|Shows land value in the books at RM215 million|
So what do you think? Syed Mokhtar is for the land or business? - or both? As he probably has more things up his sleeves. What about his relationship with Volkswagen via DRB-Hicom and we know that VW was interested in Proton's manufacturing plant before.
Note: In most cases, where there is an acquisition exercise, usually fixed assets will be revalued so that shareholders can have a view of what they are holding - in this case, those are bypassed.