Automotive News / December 27, 2005 - 8:00 am
KUALA LUMPUR -- Malaysia's state-controlled carmaker, Proton Holdings, said on Tuesday it has agreed to sell its 58 percent stake in Italian motorcycle maker MV Agusta to Italy's GEVI SpA for one euro.
Under the deal, the purchaser will assume restructured frozen debts totaling 106.94 million euros ($126.2 million) and working capital requirements of 32.50 million euros, Proton said in a statement.
"The proposed disposal is consistent with Proton's direction of divesting non-core assets," it said.
Proton rescued Agusta a year ago by pumping 70 million euros into the struggling firm, allowing it to pay off its debts, but the move into motorbikes surprised many investors.
Proton reported a net loss of 154.3 million ringgit ($40.8 million) for its fiscal second quarter ended on Sept. 30, hurt by bad-debt charges related to Agusta.